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COMMITTEE ON INTERNATIONAL 
COMMITTEE ON FOREIGN RE 





CURRENT LEGISLATION AND 
RELATED EXECUTIVE ORDERS 



U.S. House of REPRESENTAirvrs 
U.S. Senath 




COMMITTEE ON INTERNATIONAL RELATIONS 
COMMITTEE ON FOREIGN RELATIONS 



Legislation on 
Foreign Relations 
Through 1977 




JOINT COMMITTEE PRINT 



FEBRUARY 1978 



CURRENT LEGISLATION AND 
RELATED EXECUTIVE ORDERS 



VOLUME II 



U.S. House of Representatives 
U.S. Senate 



Printed for the use of the Committees on International Relations and Foreign Relations 
of the House of Representatives and the Senate respectively 



U.S. GOVERNMENT PRINTING OFFICE 
20-818 WASHINGTON : 1978 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington. D.C. 20402 
Supt. Docs. Req. No. 2507 



COMMITTEE ON INTERNATIONAL RELATIONS 
CLEMENT J. ZABLOCKI, Wisconsin, Chairman 



L. H. FOUNTAIN, North Carolina 
DANTE B. FASCELL, Florida 
CHARLES C. DIGGS, Jr., Michigan 
ROBERT N. C. NIX, Pennsylvania 
DONALD M. FRASER, Minnesota 
BENJAMIN S. ROSENTHAL, New York 
LEE H. HAMILTON, Indiana 
LESTER L. WOLFF, New York 
JONATHAN B. BINGHAM, New York 
GUS YATRON, Pennsylvania 
MICHAEL HARRINGTON, Massachusetts 
LEO J. RYAN, California 
CARDISS COLLINS, Illinois 
STEPHEN J. SOLARZ, New York 
HELEN S. MEYNER, New Jersey 
DON BONKER, Washington 
GERRY E. STUDDS, Massachusetts 
ANDY IRELAND, Florida 
DONALD J. PEASE, Ohio 
ANTHONY C. BEILENSON, California 
WYCHE FOWLER, Jr., Georgia 
E (KIKA) DE LA GARZA, Texas 
GEORGE E. DANIELSON, California 
JOHN J. CAVANAUGH, Nebraska 



WILLIAM S. BROOMFIELD, Michigan 
EDWARD J. DERWINSKI, Illinois 
PAUL FINDLEY, Illinois 
JOHN H. BUCHANAN, Jr., Alabama 
J. HERBERT BURKE, Florida 
CHARLES W. WHALEN, Jr., Ohio 
LARRY WINN, Jr., Kansas 
BENJAMIN A. OILMAN, New York 
TENNYSON GUYER, Ohio 
ROBERT J. LAGOMARSINO, California 
WILLIAM F. GOODLING, Pennsylvania 
SHIRLEY PETTIS, California 



John J. Bradt, Jr., Chief of Staff 



COMMITTEE ON FOREIGN RELATIONS 
JOHN SPARKMAN, Alabama, Chairman 



PRANK CHURCH, Idaho 
CLAIBORNE PELL, Rhode Island 
GEORGE McGOVERN, South Dakota 
DICK CLARK, Iowa 
JOSEPH R. BIDEN, JR., Delaware 
JOHN GLENN, Ohio 
RICHARD STONE, Florida 
PAUL S. SARBANES, Maryland 
MURIEL HUMPHREY, Minnesota 



CLIFFORD P. CASE, New Jersey 
JACOB K. JAVITS, New York 
JAMES B. PEARSON, Kansas 
CHARLES H. PERCY, Illinois 
ROBERT P. GRIFFIN, Michigan 
HOWARD H. BAKER, Jr., Tennessee 



NORviLL Jones, Chief of Staff 



(II) 



FOREWORD 



This volume of legislation and related material is part of a three 
volume set of laws and related material frequently referred to by the 
Committees on International Relations of the House of Representa- 
tives and Foreifjm Relations of the Senate, amended to date and anno- 
tated to show pertinent history or cross references. 

Volumes I and II contain legislation and related material and will 
be republished with amendments and additions at the end of each 
annual session of Congress. Volume III which contains treaties and 
related material will be revised only as necessary. Interim changes or 
additions involving treaties and related material will be included 
in volume II, during tho?e yeai*s when volume III is not revised and 
republished. 

This year the compilation was prepared by Larry Nowels of the 
Foreign Affairs and National Defense Division of the Congressional 
Research Service of the Library of Congress. 

Clement J. Zablocki, 
Chairman^ Committee on International Relations 
JoHx Sparkman, 
CJiairman^ Com/mittee on Foreign Relations 

(in) 



EXPLANATORY NOTE 



All public laws included in this volume, except as noted below, are 
codified and in force through the end of the fii-st session of the 95th 
Congress. The texts of the public laws in this volume are printed as 
they appear in the United States Statutes at Large rather than the 
United States Code. Amendments are incorporated into the text and 
distinguished by a footnote. The following public law remains in the 
volume although it has been repealed : 

1. Tonkin Gulf Resolution (Vol. II) 
All Executive orders are codified and in force as of January 1, 1978. 

(V) 



ABBREVIATIONS 

Bevans Treaties and Other International Agree- 
ments of the United States of America, 
1776-1949, compiled under the direc- 
tion of Charles I. Bevans. 

CFR Code of Federal Regulations. 

EAS Executive Agreement Series. 

F.R Federal Register. 

LNTS League of Nations Treaty Series. 

I Malloy, II Malloy Treaties, Convention, International Acts, 

Protocols, and Agreements Between 
the United States of America and Other 
Powers, 1776-1909, compiled under the 
direction of the United States Senate 
by William M. Malloy. 

Stat United States Statutes at Large. 

TIAS Treaties and Other International Acts 

Series. 

TS Treaty Series. 

UNTS United Nations Treaty Series. 

U.S.C United States Code. 

UST United States Treaties and Other Inter- 
national Agreements. 

(VI) 



CONTENTS 



Page 

FOREWORD Ill 

EXPLANATORY NOTE v 

ABBREVIATIONS vi 

G. FOREIGN ECONOMIC POLICY : TARIFF AND TRADE LAWS 1 

1. Trade Act of 1974 and Related Documents 3 

2. Trade Expansion Act of 1962, as amended (Public Law 87-794) 95 

3. Antidumping Legislation 108 

4. Export Administration 121 

5. Trading With the Enemy 151 

6. Johnson Act — Financial Transactions With Foreign Governments 

(Public Law 80-772) (partial text) 158 

7. Foreign Investment in the United States 159 

8. Resolution With Respect to the World Food Situation 174 

9. Collection and Publication of Foreign Commerce andTrade Statistics 

(Public Law 87-826) 176 

H. FINANCIAL INSTITUTIONS 179 

1. Export-Import Bank Act of 1945, as amended (Public Law 79-173). __ 181 

2. Export Expansion 192 

3. Bretton Woods Agreements Act, as amended (Public Law 79-171) 195 

4. Special Drawing Rights Act, as amended (Public Law 90-349) 207 

5. Par Value Modification Act, as amended (Public Law 92-268) 210 

6. Providing Amendments to the Bretton Woods Agreement Act (Public 

Law 94-564) 212 

7. Foreign Currency Reports (Public Law 93-110) (partial text) 214 

8. Executive Order 11269, as amended (National Advisory Council on 

International Monetary and Financial Policies) 216 

9. International Finance Corporation Act, as amended (Public Law 84- 

350) 218 

10. Inter- American Development Bank Act, as amended (Public Law 86- 

147) 221 

11. International Development Association Act, as amended (Public Law 

86-565) 231 

12. Asian Development Bank Act, as amended (Public Law 89-369) 236 

13. African Development Fund Act, as amended (Public Law 94-302) 

(partial text) 242 

14. International Financial Institutions (Public Law 95-118) (partial 

text) 245 

15. Convention on the Settlement of Investment Disputes Act of 1966 

(Public Law 89-532) 249 

I. ENERGY AND NATURAL RESOURCES 251 

1. Atomic Energy and Related Materials 253 

2. Energy Policy and Conservation Act (Public Law 94-163) (partial 

text) 290 

3. Defense Production Act Amendments of 1975, as amended (Public Law 

94-152) (partial text) 307 

4. Negotiations With Canada Concerning the Alaska Pipeline (Public Law 

93-153) (partial text) 312 

(VII) 



VIII 

J. UNITED NATIONS AND OTHER INTERNATIONAL ORGANIZA- Paw 

TIONS 313 

1. The United Nations Participation Act of 1945, as amended (Public Law 

79-264) 315 

2. The United Nations Headquarters Agreement Act (Public Law 80-357). _ 322 

3. Appropriations Limitation on Contributions to International Organi- 

zations (Public Law 92-544) (partial text) 324 

4. Rhodesia Resolution 326 

5. United Nations Peacekeeping Forces in the Middle East (Public Law 

94-37) 331 

6. Response to United Nations Resolution on Zionism (H. Res. 855, 

94th Congress) 332 

7. United Nations Environment Program Participation Act of 1973 

(Public Law 93-188) 333 

8. Privileges and Immunities 334 

K. WAR POWERS, COLLECTIVE SECURITY, AND RELATED 

MATERIAL 363 

1. War Powers 365 

2. Cuban Resolution (Public Law 87-733) 375 

3. Middle East Resolutions 376 

4. Berlin Resolution (H. Con. Res. 570, 87th Congress) 383 

5. Indochina Resolutions 384 

6. National Commitment (S. Res. 85, 91st Congress) 387 

7. Treaty of Friendship and Cooperation Between the United States and 

Spain— Implementation for Fiscal Year 1977 (Public Law 94-537) ___ 388 

L. LAW OF THE SEAS AND SELECTED MARITIME LEGISLATION.. 391 

1. Law of the Seas 393 

2. Oil Pollution 418 

3. North Pacific Fisheries Act of 1954, as amended (Public Law 83-579) __ 433 

4. Tuna Conventions 440 

5. Whaling Convention Act of 1949 (Public Law 81-676) 457 

6. Bilateral Inter- American Fishing Agreements With the United States.. 463 

7. Fisherman's Protective Act of 1967, as amended (Public Law 83-680) __ 471 

8. Endangered Species Act of 1973, as amended (Public Law 93-205) 

(partial text) 479 

9. Marine Mammal Protection Act of 1972, as amended (Public Law 

92-522) (partial text) 490 

M. AVIATION AND SPACE 499 

1. Antihijacking Act of 1974 (Public Law 93-366) (partial text) 501 

2. International Cooperation in Scientific Research 507 

N. OTHER LEGISLATION... 511 

1. Provisions of Law Relating to Travel Outside the United States 513 

2. Legislation Authorizing U.S. Participation in Parliamentary Confer- 

ences 518 

3. International Claims Settlement Acts 526 

4. Registration of Foreign Agents 581 

5. Logan Act — Private Correspondence With Foreign Governments (Pub- 

lic Law 80-772) 597 

6. Neutrality Act of 1939, as amended (Public Resolution 76-54) 598 

INDEX -. 605 



G. FOREIGN ECONOMIC POLICY: TARIFF AND 

TRADE LAWS 

CONTENTS 

Page 

1. Trade Act of 1974 and Related Documents 3 

a. Trade Act of 1974 (Public Law 93-618) (partial text) 3 

b. Executive Order 11888 (Implementing the Generalized System 

of Preferences) 82 

c. Executive Order 11854 (Waiver Under the Trade Act of 1974 

With Respect to the Socialist Republic of Romania) 89 

d. Executive Order 11846 (Administration of the Trade Agreements 

Program) 90 

2. Trade Expansion Act of 1962, as amended (Public Law 87-794) 95 

3. Antidumping Legislation 108 

a. Antidumping Act, 1921, as amended (Public Law 67-10) (par- 

tial text) 108 

b. Administration of the Antidumping Act, 1921 (Public Law 90- 

634) 120 

4. Export Administration 121 

a. Export Administration Act of 1969, as amended (Public Law 

91-184) 121 

b. Export Administration Amendments of 1977 (Public Law 95- 

52) (partial text) 144 

c. Executive Order 12002 (Administration of the Export Admin- 

istration Act of 1969, ns amended) 147 

d. Executive Order 11753 (Establishing the President's Export 

Council) 149 

5. Trading With the Enemy 151 

a. Trading With the Enemy Act of 1917, as amended (Public Law 

65-91) (partial text) 151 

b. Trading With the Enemy Act Reform Legislation (Public Law 

95-223) (partial text) 153 

6. Johnson Act — Financial Transactions With Foreign Governments (Pub- 

lic Law 80-772) (partial text) 158 

7. Foreign Investment in the United States 159 

a. Foreign Investment Study Act of 1974 (Public Law 93-479) ._- 159 

b. Executive Order 11858 (Foreign Investment in the United 

States) 164 

c. International Investment Survey Act of 1976 (Public Law 94- 

472) 166 

d. Executive Order 11961 (Administration of the International In- 

vestment Survey Act of 1976) 172 

e. Executive Order 11962 (Establishing the President's Advisory 

Board on International Investment) 173 

8. Resolution WMth Respect to the World Food Situation 174 

9. Collection and Publication of Foreign Commerce and Trade Statistics 

(Public Law 87-826) 170 



(1) 



1. Trade Act of 1974 and Related Documents 
a. Trade Act of 1974, as amended 

Partial text of Public Law 93-618 [H.R. 10710], 88 Stat, 1978, approved Janu- 
ary 3, 1975 as amended by Public Law 94-455 [H.R, 10612], 90 Stat. 1520 at 
1763, approved October 4, 1976 ' 

AN ACT To promote the development of an open, nondiscriminatory, and fair 
world economic system, to stimulate fair and free competition between the 
United States and foreign nations, to foster the economic growth of, and full 
employment in, the United States, and for other purposes. 

Be it enacted hy the Senate and Hoxme of Re/pre sentativeR of the 
United States of America in Congress assemhied. That this Act. with 
the fo]lowin<r tahlo of contents, mav bo cited as the "Trade Act of 
1974". 

Sec. 2. Statement of Purposes. 

The purposes of this Act are, through trade agreements affording 
mutual benefits — 

(1) to foster the economic growtli of and full employment in 
the United States and to strengthen economic relations between 
the Ignited States and foreign countries through open and nondis- 
criminatory world trade; 

(2) to harmonize, reduce, and eliminate barriers to trade on a 
basis which assures substantially equivalent competitive oppor- 
tunities for the commerce of the United States: 

(3) to establish fairness and equity in international trading 
relations, including reform of the General Agreement on Tariffs 
and Trade; 

(4) to provide adequate procedures to safeguard American 
industry and labor against unfair or injurious import competition, 
and to assist industries, firm, workers, and connnunities to adjust 
to changes in international trade flows; 

(5) to open up market opportunities for United States com- 
merce in nonmarket economies ; and 

(6) to provide fair and reasonable access to products of less 
developed countries in the United States market. 

TITLE I— NEGOTIATING AND OTHER 
AUTHORITY 

Chapter 1 — Rates of Duty and Other Trade Barriers 

Sec. 101. Basic Authority for Trade Agreements. 

(a) Whenever the President determines that any existing duties or 
other import restrictions of any foreign country or the United States 
are unduly burdening and restricting the foreign trade of the United 

» 19 U.S.C. 2101-2487. 

(3) 



States and that the purposes of this Act will be promoted thereby, 
the President — 

(1) during the 5-year period beginning on the date of the 
enactment of this Act, may enter into trade agreements with 
foreign countries or instrumentalities thereof ; and 

(2) may proclaim such modification or continuance of any 
existing duty, such continuance of existing duty-free or excise 
treatment, or such additional duties, as he determines to be re- 
quired or appropriate to carry out any such trade agreement. 

(b) (1) Except as provided in paragraph (2), no proclamation pur- 
suant to subsection (a) (2) sliall be made decreasing a rate of duty 
to a rate below 40 percent of the rate existing on January 1, 1975. 

(2) Paragraph (1) shall not apply in the case of any article for 
which the rate of dut}' existing on January 1, 1975, is not more than 
5 percent ad valorem. 

(c) No proclamation shall be made pursuant to subsection (a) (2) 
increasing any rate of duty to. oi' imposing a rate above, the higher 
of the following : 

(1) the rate which is 50 percent above the rate set forth in rate 
column numbered 2 of the Tariff Schedules of the United States 
as in effect on January 1. 1975, or 

(2) the rate wliich is 20 percent ad valorem above the rate exist- 
ing on January 1, 1975. 

Sec. 102. Nontariff Barriers to and Other Distortions of Trade. 

(a) The Congress finds that barriers to (and other distortions of) 
international trade are reducing the growth of foreign markets for the 
products of Ignited States agriculture, industry, mining, and com- 
merce, diminishing the intended mutual benefits of reciprocal trade 
concessions, adversely affecting the United States economy, prevent- 
ing fair and equitable access to supplies, and preventing the develop- 
ment of open and nondiscriminatory trade among nations. The Presi- 
dent is urged to take all appropriate and feasible steps within his 
power (including the full exercise of the rights of the United States 
under international agreements) to harmonize, reduce, or eliminate 
such barriers to (and other distoi'tions of) international trade. The 
President is further urged to utilize the authority granted by subsec- 
tion (b) to negotiate trade agreements with other countries and instru- 
mentalities providing on a basis of mutuality for the harmonization, 
leduction, or elimination of such barriers to (and other distortions of) 
international trade. Nothing in this subsection shall be construed as 
prior approval of any legislation which may be necessary to imple- 
ment an agi-eement concerninrr barriers to (or other distortions of) 
international trade. 

(b) Whenever the President determines that any barriers to (or 
other distortions of) international trade of any foreign country or the 
Ignited States unduly burden and restrict the foreign trade of the 
T'nited States or adversely affect the United States economy, or that 
the imposition of such barriers is likely to result in such a burden, 
restriction, or effect, and that the purposes of this Act will be pro- 
moted thereby, the President, during the 5-year period beginning on 
t1ie date of the enactment of this Act. may enter into ti-ade agreements 
witli foreign countries or instrnmentalities providing for the har- 



monization. reduction, or elimination of such barriers (or other dis- 
tortions) or providino: for the prohibition of or limitations on the 
imposition of such barriers (or other distortions). 

(c) Hefoie the President enters into any trade a^rreement under this 
section pi()\ idin<r for the harmonization. leduction. oi- elimination of 
a barrier to (or other distortion of) international trade, he shall con- 
sult with the Committee on AVa\>: and Means of the House of Repre- 
sentatives, the Connn ttee on Finance of the Senate, and with each 
conmiittee of the House and the Senate and each joint committee of 
the Con<rress which has jurisdiction over le^rislation involvin<r subject 
matters wliich would be affected by such trade afrreement. Such con- 
sultation shall include all matters relating to the implementation of 
such trade airreemcnt as proxided in subsections (d) and (e). If it is 
proposed to implement such trade agreement, together with one or 
more other trade agreements entered into under this section, in a 
single implementing bill, such consultation shall include the desirabil- 
ity and feasibility of such pioposed implementation. 

(d) AVhenever the President enters into a trade agreement under 
this section providing for the harmonization, reduction, or elimination 
of a barrier to (or other distortion of) international trade, he shall 
submit such agreement, together with a draft of an implementing bill 
(described in section 151(b)) and a statement of any administrative 
action proposed to implement such agreement, to the Congress as pro- 
vided in subsection (e), and such agreement shall enter into force with 
i-espect to the United States only if the provisions of subsection (e) 
are complied with and the implementing bill submitted by the Presi- 
dent is enacted into law. 

(e) Each trade agreement submitted to the Congress under this sub- 
section shall enter into force with respect to the United States if 
(and only if) — 

(1) the President, not less than 90 days before the day on which 
he enters into such trade agreement, notifies the House of Repre- 
sentatives and the Senate of his intention to enter into such an 
agreement, and promptly thereafter publishes notice of such in- 
tention in the Federal Register; 

(2) after entering into the agreement, the President transmits 
a document to the House of Representatives and to the Senate 
containing a copy of such agreement together with — 

(A) a draft of an implementing bill and a statement of 
any administrative action proposed to implement such agree- 
ment, and an explanation as to how the implementing bill 
and proposed administrative action change or affect existing 
law, and 

(B) a statement of his reasons as to how the agreement 
serves the interest of Ignited States commerce and as to why 
the implementing bill and proposed administrative action 
is lequired or a])pT*oprnte to carry out the agreement: and 

(3) the implementing bill is enacted into law. 

(f) To insure that a foreign country or instrumentality which 
receives benefits under a trade agreement entered into under this 
section is subject to the obligations imposed by such agreement, the 
President may reconunend to Congress in the implementinjr bill and 
statement of administrative action submitted with respect to such 
agreement that the benefits and obligations of such agreement apply 



6 

solely to the parties to such agreement, if such application is con- 
sistent with the terms of such agreement. The President may also 
recommend with respect to any such agreement that the benefits and 
obligations of such agreement not apply uniformly to all parties to 
such agreement, if such application is consistent with the terms of 
such agreement. 

(g) For purposes of this section — 

(1) the term "barrier" includes the American selling price 
basis of customs evaluation as defined in section 402 or 402a of 
the Tariff Act of 1930,^ as appropriate ; 

(2) the term "distortion" includes a subsidy ; and 

(3) the term "international trade" includes trade in both goods 
and services. 

Sec. 103. Overall Negotiating Objective. 

The overall United States negotiating objective under sections 101 
and 102 shall be to obtain more open and equitable market access and 
the harmonization, reduction, or elimination of devices which distort 
trade or commerce. To the maximum extent feasible, the harmoniza- 
tion, reduction, or elimination of agricultural trade barriers and dis- 
tortions shall be undertaken in conjunction with the harmonization, 
reduction, or elimination of industrial trade barriers and distortions. 

Sec. 104. Sector Negotiating Objective. 

(a) A principal United States negotiating objective under sections 
101 and 102 shall be to obtain, to the maximum extent feasible, with 
respect to appropriate product sectors of manufacturing, and with 
respect to the agricultural sector, competitive opportunities for United 
States exports to the developed countries of the world equivalent to 
the competitive opportunities afforded in United States markets to 
the importation of like or similar products, taking into account all 
barriers (including tariffs) to and other distortions of international 
trade affecting that sector. 

(b) As a means of achieving the negotiating objective set forth in 
subsection (a), to the extent consistent with the objective of maximiz- 
ing overall economic benefit to the United States (through maintain- 
ing and enlarging foreign markets for products of United States 
agriculture, industry, mining, and commerce, through the develop- 
ment of fair and equitable market opportunities, and through open 
and nondiscriminatory world trade), negotiations shall, to the extent 
feasible be conducted on the basis of appropriate product sectors of 
manufacturing. 

(c) For the purposes of this section and section 135. the Special 
Representative for Trade Xegotiations together with the Secretarv of 
Commerce, Agriculture, or Labor, as appropriate, shall, after con- 
sultation with the Advisory Committee for Trade Xegotiations estab- 
lished under section 135 and after consultation with interested private 
organizations, identify appropriate product sectors of manufacturing. 

(d) If the President determines that competitive opportunities in 
one or more product sectors will be significantlv affected by a trade 
agreement concluded under section 101 or 102. he shall submit to the 
Congress witli eacli such agreemeiit an analvsis of the extent to which 
the negotiating objective set forth in subsection (a) is achieved by 
such agreement in each product sector or product sectors. 

•19 U.S.C. 1401a. 1402. 



Sec. 105. Bilateral Trade Agreements. 

If the President deteriiHiies that hihiteral trade agreements will 
more effectively promote tlie economic growth of. and full employment 
in, the United States, then, in such cases, a negotiating objective under 
section 101 and 10'2 shall he to enter into bilateral trade agreements. 
Each such trade agreement shall provide for mutually advantageous 
economic benefits. 

Sec. 106. Agreements With Developing Countries. 

A United States negotiating ()l)jective under sections 101 and 102 
shall be to enter into trade agreements which promote the economic 
growth of both developing countries and the United States and the 
mutual expansion of market opportunities. 

Sec. 107. International Safeguard Procedures. 

(a) A principal United States negotiating objective under section 
102 shall be to obtain internationally agreed upon rules and pro- 
cedures, in the context of the harmonization, reduction, or elimination 
of barriers to, and other distortions of, international trade, which 
permit the use of temporary measures to ease adjustment to changes 
occurring in competitive conditions in the domestic markets of the 
parties to an agreement resulting from such negotiations due to the 
expansion of international trade. 

(b) Any agreement entered into under section 102 may include 
provisions establishing procedures for — 

(1) notification of affected exporting countries, 

(2) international consultations, 

(3) international review of changes in trade flows, 

(4) making adjustments in trade flows as the result of such 
changes, and 

(5) international mediation. 

Such agreements may also include provisions which — 

(A) exclude, under specified conditions, the parties 
thereto from compensation obligations and retaliation, and 

(B) permit domestic public procedures through which in- 
terested parties have the right to paiticij^ate. 

Sec. 108. Access Supplies. 

(a) A ])rincipal United States negotiating objective under section 
102 shall be to enter into trade agreements with foreign countries and 
instrumentalities to assure the United States of fair and equitable 
access at reasonable prices to supplies of articles of commerce which 
are important to the economic requirements of the United States and 
for which the United States does not have, or cannot easily develop, 
the necessary domestic productive capacity to supply its own 
requirements. 

(b) Any agreement entered into under section 102 may include 
provisions which — 

(1) assure to the Ignited Stages the continued availability of 
important articles at reasonable prices, and 

(2) provide reciprocal concessions or comparable trade obliga- 
tions, or both, by the United States. 

Sec. 109. Staging Requirements and Rounding Authority. 

(a) Except as otherwise provided in this section, the aggregate 
reduction in the rate of duty on any article which is in effect on any 



8 

day pursuant to a trade agreement under section 101 shall not exceed 
the aggregate reduction which would have been in eflfect on such day 
if— 

(1) a reduction of 3 percent ad valorem or a reduction of 
one-tenth of the total reduction, whichever is greater, had taken 
effect on the effective date of the first reduction proclaimed pur- 
suant to section 101(a) (2) to carry out such agreement with re- 
spect to such article, and 

(2) a reduction equal to the amount applicable under para- 
graph (1) had taken effect at 1-year intervals after the effective 
date of such first reduction. 

This subsection shall not apply in any case where the total reduction 
in the rate of duty does not exceed 10 percent of the rate before the 
reduction. 

(b) If the President determines that such action will simplify the 
computation of the amount of duty imposed with respect to an article, 
he may exceed the limitation provided by section 101 (b) or subsection 
(a) of this section by not more than whichever of the following is 



(1) the difference between the limitation and the next lower 
whole number, or 

(2) one-half of 1 percent ad valorem. 

(c) (1) No reduction in the rate of duty on any article pursuant to 
a trade agreement under section 101 shall take effect more than 10 
years after the effective date of the first reduction proclaimed to carry 
out such trade agreement with respect to such article. 

(2) If any part of a reduction takes effect, then any time thereafter 
during which such part of the reduction is not in effect by reason of 
legislation of the Ignited States or action thereunder, the effect of 
which is to maintain or increase the rate of duty on an article, shall 
be excluded in determining — 

(A) the 1-year intervals referred to in subsection (a) (2), and 

(B) the expiration of the 10-year period referred to in 
paragraph (1) of this subsection. 

Chapter 2 — Other Authority 

Sec. 121. Steps To Be Taken Toward GATT Revision; Authoriza- 
tion of Appropriations for GATT. 

(a) The President shall, as soon as practicable, take such action as 
may be necessary to bring trade agreements heretofore entered into, 
and the application thereof, into conformity with principles promoting 
the development of an open, nondiscriminatory, and fair ^vorld eco- 
nomic system. The action and principles referred to in the preceding 
sentence include, but are not limited to, the following — 

(1) the revision of decisionmaking procedures in the General 
Agreement on Tariffs and Trade ^ (hereinafter in this subsection 
referred to as "GATT") to more nearly reflect the balance of 
economic interests, 

(2) the revision of article XIX of the GATT into a truly 
international safeguard procedure which takes into account all 
forms of import restraints countries use in response to injurious 
competition or threat of such competition, 

3 See Sec. O, Vol. Ill for text. 



9 

(3) the extension of GATT articles to conditions of trade not 
presently covered in order to move toward more fair trade 
practices, 

(4) the adoption of international fair labor standards and of 
pul)lic petition and confrontation procedures in the GATT, 

(5) the revision of GATT articles with respect to the treatment 
of border adjustments for internal taxes to redress the dis- 
advantage to countries relying primarily on direct rather than 
indirect t axes for revenue needs, 

(6) the revision of the balance-of -payments provision in the 
GATT articles so as to recognize import surcharges as the pre- 
ferred means by which industrial countries may handle balance- 
of-payments deficits insofar as import restraint measures are 
required, 

(7) the improvement and strengthening of the provisions of 
GATT and other .international agreements governing access 
to supplies of food, raw materials, and manufactured or semi- 
manufactured j)roducts, including rules and j^rocedures govern- 
ing the imposition of export controls, the denial of fair and 
equitable access to such supplies, and effective consultative pro- 
cedures on problems of supply shortages, 

(8) the extension of the provisions of GATT or other inter- 
national agreements to authorize multilateral procedures by con- 
tracting parties with respect to member or nonmember countries 
which deny fair and equitable access to supplies of food, raw 
materials, and manufactured or semi-manufactured products, and 
thereby substantially injure the international community, 

(9) any revisions necessary to establish procedures for regular 
consultation among countries and instrumentalities with respect 
to international trade and procedures to adjudicate commercial 
disputes among such countries or instrumentalities, 

(10) any revisions necessary to apply the principles of 
reciprocity and nondiscrimination, including the elimination of 
special preferences and reverse preferences, to all aspects of inter- 
national trade. 

(11) any revisions necessary to define the forms of subsidy 
to industries producing products for export and the forms of 
subsidy to attract foreign investment which are consistent with 
an open, nondiscriminatory, and fair system of international 
trade, and 

(1-2) consistent with the provisions of section 107. any revisions 
necessary to establish within the GATT an international agree- 
ments on articles (includinir footwear), including the creation 
of regular and institutionalized mechanisms for the settlement of 
disputes, and of a surveillance body to monitor all international 
shinments in such articles. 

(b) The President shall, to the extent feasible, enter into agree- 
ments with foreign countries or instrumentalities to establish the 
principles described in subsection (a) with respect to international 
trade between the United States and such countries or instrumen- 
talities. 

(c) If the President enters into a trade agreement which establishes 
rules or procedures, including those set forth in subsection (a), pro- 



20-594 O - 78 - 2 



10 

moting the development of an open, nondiscriminatory, and fair world 
economic system and if the implementation of such agreement will 
change any provision of Federal law (including a material change 
in an administrative rule) , such agreement shall take effect with respect 
to the United States only if the appropriate implementing legislation 
is enacted by the Congress unless implementation of such agreement 
is effected pursuant to authority delegated by Congress. Such trade 
agreement may be submitted to the Congress for approval in accord- 
ance with the procedures of section 151. Nothing in this section shall 
be construed as prior approval of any legislation necessary to imple- 
ment a trade agreement entered into under this section. 

(d) There are authorized to be appropriated annually such sums 
as may be necessary for the payment by the United States of its share 
of the expenses of the Contracting Parties to the General Agreement 
on Tariffs and Trade. This authorization does not imply approval or 
disapproval by the Congress of all articles of the General Agreement 
on Tariffs and Trade. 

Sec. 122. Balance-of-Payments Authority. 

(a) "Whenever fundamental international payments problems re- 
quire special import measures to restrict imports — 

(1) to deal with large and serious United States balance-of- 
payments deficits, 

(2) to prevent an imminent and significant depreciation of 
the dollar in foreign exchange markets, or 

(3) to cooperate with other countries in correcting an inter- 
national balance-of-payments disequilibrium, 

the President shall proclaim, for a period not exceeding 150 days 
(unless such period is extended by Act of Congress) — 

(A) a temporary import surcharge, not to exceed 15 percent ad 
valorem, in the form of duties (in addition to those already im- 
posed, if any) on articles imported into the United States; 

(B) temporary limitations through the use of quotas on the 
importation of articles into the United States; or 

(C) both a temporary import surcharge described in subpara- 
graph (A) and temporary limitations described in subparagraph 
(B). 

The authority delegated under subparagraph (B) (and so much of 
subparagraph (C) as relates to subparagraph (B)) may be exercised 
(i) only if international trade or monetary agreements to which the 
United States is a party permit the imposition of quotas as a balance- 
of-payments measure, and (ii) only to the extent that the fundamental 
imbalance cannot be dealt with effectively by a surcharge proclaimed 
pursuant to subparagraph (A) or (C). Any temporary import sur- 
charge proclaimed pursuant to subparagraph (A) or (C) shall be 
treated as a regular customs duty. 

(b) If the President determines that the imposition of import re- 
strictions under subsection (a) will be contrary to the national inter- 
est of tlie TTnited States, then he may refrain from proclaiming such 
restrictions and he shall — 

(1) immediately inform Congress of his determination, and 

(2) ininiediately convene the group of congressional official ad- 
visers designated under section 161(a) and consult with them as 
to the reasons for such determination. 



11 

(c) Whenovor the Presidont determines that fundamental interna- 
tional payments problems require special import measures to increase 
imports- - 

(1) to deal with larire and persistent United States balance-of- 
trade surpluse^. as determined on the basis of the cost-insurance- 
freight value of imports as reported by the Bureau of the Census, 
or 

(2) to prevent significant appreciation of the dollar in foreign 
exchange markets. 

the President is authorized to proclaim, for a period of 150 days (un- 
less such period is extended by Act of Congress) — 

(A) a temporary reduction (of not more than 5 percent ad 
varolem) in the rate of duty on any article ; and 

(B) a temporary increase in the value or quantity of articles 
which may be imported under any import restriction, or a tem- 
porary suspension of any import restriction. 

Import liberalizing actions proclaimed pursuant to this subsection 
shall be of broad and uniform application with respect to product 
coverage except that the President shall not proclaim measures under 
this subsection with respect to those articles w^here in his judgment 
such action will cause or contribute to material injury to firms or 
workers in any domestic industry, including agriculture, mining, fish- 
ing, or commerce, or to impairment of the national security, or will 
otherwise be contrary to the national interest. 

(d) (1) Import restricting actions proclaimed pursuant to subsec- 
tion (a) shall be applied consistently with the principle of nondis- 
criminatory treatment. In addition, any quota proclaimed pursuant to 
subparagraph (B) of subsection (a) shall be applied on a basis which 
aims at a distribution of trade with the United States approaching as 
closely as possible that which various foreign countries might have 
expected to obtain in the absence of such restrictions. 

(2) Notwithstanding paragraph (1), if the President determines 
that the purposes of this section will best be served by action against 
one or more countries having large or persistent balance-of-payments 
surpluses, he may exempt all other countries from such action. 

(3) After such time when there enters into force for the United 
States new rules regarding the application of surcharges as part of a 
reform of internationally agreed balance-of-payments adjustments 
procedures, the exemption authority contained in paragraph (2) shall 
be applied consistently with such new international rules. 

(4) It is the sense of Congress that the President seek modifica- 
tions in international agreements aimed at allowing the use of sur- 
charges in place of quantitative restrictions (and providing rules to 
govern the use of such surcharges) as a balance-of-payments adjust- 
ment measure within the context of arrangements for an equitable 
sharing of balance-of-payments adjustment responsibility among defi- 
cit and surplus countries. 

(e) Import restricting actions proclaimed pursuant to subsection 
(a) shall be of broad and uniform application with respect to product 
coverage except where the President determines, consistently with the 
purposes of this section, that certain articles should not be subject to 
import restricting actions because of the needs of the United States 
economy. Such exceptions shall be limited to the unavailability of 
domestic supply at reasonable prices, the necessary importation of 



12 

raw materials, avoiding serious dislocations in the supply of imported 
goods, and other similar factors. In addition, uniform exceptions may 
be made where import restricting actions will be unnecessary or inef- 
fective in carrying out the purposes of this section, such as with respect 
to articles already subject to import restrictions, goods in transit, or 
goods under binding contract. Neither the authorization of import 
restricting actions nor the determination of exceptions with respect 
to product coverage shall be made for the purpose of protecting indi- 
vidual domestic industries from import competition. 

(f) Any quantitative limitation proclaimed pursuant to subpara- 
graph (B) or (C) of subsection (a) on the quantity or value, or both, 
of an article — 

(1) shall permit the importation of a quantity or value which 
is not less than the quantity or value of such article imported into 
the United States from the foreign countries to which such limita- 
tion applies during the most recent period which the President 
determines is representative of imports of such article, and 

(2) shall take into account any increase since the end of such 
representative period in domestic consumption of such article and 
like or similar articles of domestic manufacture or production. 

(g) The President may at any time, consistent with the provisions 
of this section, suspend, modify, or terminate, in whole or in part, any 
proclamation under this section either during the initial 150-day pe- 
riod of effectiveness or as extended by subsequent Act of Congress. 

(h) No provision of law authorizing the termination of tariff con- 
cessions shall be used to impose a surcharge on imports into the United 
States. 

Sec. 123. Compensation Authority. 

(a) Whenever any action has been taken under section 203 to 
increase or impose any duty or other import restriction, the Presi- 
dent — 

(1) may enter into trade agreements with foreign countries or 
instrumentalities for the purpose of granting new concessions as 
compensation in order to maintain the general level of reciprocal 
and mutually advantageous concessions ; and 

(2) may proclaim such modification or continuance of any 
existing duty, or such continuance of existing duty-free or excise 
treatment, as he determines to be required or appropriate to carry 
out any such agreement. 

(b) (1) No proclamation shall be made pursuant to subsection (a) 
decreasing any rate of duty to a rate which is less than 70 percent of 
the exiting rate of duty. 

(2) Where the rate of duty in effect at any time is an intermediate 
stage under section 109, the proclamation niade pursuant to subsec- 
tion (a) may provide for the reduction of each rate of duty at each 
such stage proclaimed under section 101 by not more than 30 percent 
of such rate of duty, and may provide for a final rate of dutv Avhich 
IS not less than 70 percent of the rate of duty proclaimed as the final 
stage under section 101. 

(3) If the President determines that such action will simplify the 
computation of the amount of duty imposed with a respect to an article 



13 

he may exceed the limitations provided by paragraphs (1) and (2) of 
this subsection by not more than the lesser of — 

(A) the difference between such limitation and the next lower 
whole number, or 

(B) one-half of 1 percent ad valorem. 

(4) Any concessions granted under subsection (a)(1) shall be 
reduced and terminated according to substantially the same time sched- 
ule for reduction applicable to the relevant import relief under section 
203(h). 

(c) Before entering into any trade agreement under this section 
with any foreign country or instrumentality, the President shall con- 
sider whether such country or instrumentality has violated trade con- 
cessions of benefit to the' United States and such violation has not 
been adequately offset by the action of the United States or by such 
country or instrumentality. 

(d) Notwithstanding the provisions of subsection (a), the authority 
delegated under section 101 shall be used for the purpose of granting 
new concessions as compensation within the meaning of this section 
until such authority terminates. 

Sec. 124. THvo-Year Residual Authority to Negotiate Duties. 

(a) Whenever the President determines that any existing duties 
or other import restrictions of any foreign country or the United 
States are unduly burdening and restrictino: the foreign trade of the 
United States and that the purposes of this Act will be promoted 
thereby, the President — 

(1) may enter into trade agreements with foreign countries 
or instrumentalities thereof, and 

(2) may proclaim such modification or continuance of any 
existing duty, such continuance of existing duty-free or excise 
treatment, or such additional duties, as he determines to be 
required or appropriate to carry out an)^ such trade agreement. 

(b) Agreements entered into under this section in any 1-year period 
shall not provide for the reduction of duties, or the continuance of 
duty-free or excise treatment, for articles which account for more than 
2 percent of the value of the United States imports for the most recent 
12-month period for which import statistics are available. 

(c) (1) No proclamation shall be made pursuant to subsection (a) 
decreasing any rate of duty to a rate which is less than 80 percent 
of the existing rate of duty. 

(2) No proclamation shall be made pursuant to subsection (a) 
decreasing or increasing any rate of duty to a rate which is lower or 
higher than the corresponding rate which would have resulted if the 
maximum authority granted by section 101 with respect to such article 
had been exercised. 

(3) Where the rate of duty in effect at any time is an intermediate 
stage under section 109, the proclamation made pursuant to subsection 
(a) may provide for the reduction of each rate of duty at each such 
stage proclaimed under section 101 by not more than 20 percent of such 
rate of duty, and. subject to the limitation in paragraph (2), may 
provide for a final rate of duty which is not less than 80 percent of 
the rate of duty proclaimed as the final stage under section 101. 

(4) If the President determines that such action will simplify 
the computation of the amount of duty imposed with respect to an 



14 

article, he may exceed the limitations provided by paragraphs (1) 
and (2) of this subsection by not more than the lesser of — 

(A) the difference between such limitation and the next lower 
whole number, or 

(B) one-half of 1 percent ad valorem. 

(d) Agreements may be entered into under this section only during 
the 2-year period which immediately follows the close of the period 
during which agreements may be entered into under section 101. 

Sec. 125. Termination and Withdrawal Authority. 

(a) Every trade agreement entered into under this Act shall be sub- 
ject to termination, in whole or in part, or withdrawal, upon due notice, 
at the end of a period specified in the agreement. Such period shall be 
not more than 3 years from the date on which the agreement becomes 
effective. If the agreement is not terminated or withdrawn from at 
the end of the period so specified, it shall be subject to termination or 
withdrawal thereafter upon not more than 6 months' notice. 

(b) The President may at any time terminate in whole or in part, 
any proclamation made under this Act. 

(c) Whenever the United States, acting in pursuance of any of its 
rights or obligations under any trade agreement entered into pursuant 
to this Act, section 201 of the Trade Expansion Act of 1962 * or section 
350 of the Tariff Act of 1930,^ withdraws, suspends, or modifies any 
obligation with respect to the trade of any foreign country or instru- 
mentality thereof, the President is authorized to proclaim increased 
duties or other import restrictions, to the extent, at such times, and for 
such periods as he deems necessary or appropriate, in order to exercise 
the rights or fulfill the obligations of the United States. ^NTo proclama- 
tion shall be made under this subsection increasing any existing duty 
to a rate more than 50 percent above the rate set forth in rate column 
numbered 2 of the Tariff Schedules of the United States,^ as in effect 
on January 1, 1975, or 20 percent ad valorem above the rate existing 
on January 1, 1975, whichever is higher. 

(d) Whenever snij foreign country or instrumentality withdraws, 
suspends, or modifies the application of trade agreement obligations 
of benefit to the United States without granting adequate compensation 
therefor, the President, in pursuance of rights granted to the United 
States under any trade agreement and to the extent necessary to pro- 
tect United States economic interests (including United States balance 
of payments) , may — 

(1) withdraw, suspend, or modify the application of substan- 
tially equivalent trade agreement obligations of benefit to such 
foreign country or instrumentality, and 

(2) proclaim under subsection (c) such increased duties or 
other import restrictions as are appropriate to effect adequate 
compensation from such foreign country or instrumentality. 

(e) Duties or other import restrictions required or appropriate to 
carry out any trade agreement entered into pursuant to this Act. sec- 
tion 201 of the Trade Expansion Act of 1962.* or section 350 of the 
Tariff Act of 1930 ° shall not be affected by any termination, in whole 
or in part, of such agreement or by the withdrawal of the United 

* 19 U.S.C. 1821. See p. 95 for text. 
8 19 U.S.C. 1351. 
•19 U.S.C. 1202. 



16 

States for such agreement and shall remain in effect after the date of 
such termination or withdrawal for 1 year, unless the President by 
proclamation provides that such rates shall be restored to the level at 
which they would be but for the agreement. Within 60 days after the 
date of any such termination or withdrawal, the President shall trans- 
mit to the Congress his recommendations as to the appropriate rates 
of duty for all articles which were atfected by the termination or with- 
drawal or would have been so alfected but for the preceding sentence, 
(f) Before taking any action pursuant to subsection (b), (c), or 
(d), the President shall provide for a public hearing during the course 
of which interested persons shall be given a reasonable opportunity to 
be present, to produce evidence, and to be heard, unless he determines 
that such prior hearings will be contrary to the national interest 
because of the need for expeditious action, in which case he shall 
provide for a public hearing promptly after such action. 

Sec. 126. Reciprocal Nondiscriminatory Treatment. 

(a) Except as otherwise provided in this Act or in any other pro- 
vision of law, any duty or other import restriction or duty-free treat- 
ment proclaimed in carrying out any trade agreement under this title 
shall apply to products of all foreign countries, whether imported 
directly or indirectly. 

(b) The President shall determine, after the conclusion of all 
negotiations entered into under this Act or at the end of the 5-year 
period beginning on the date of enactment of this Act, whichever is 
earlier, whether any major industrial country has failed to make con- 
cessions under trade agreements entered into under this Act which 
provide competitive opportunities for the commerce of the United 
States in such country substantially equivalent to the competitive 
opportunities, provided by concessions made by the United States 
under trade agreements entered into under this Act, for the commerce 
of such country in the United States. 

(c) If the President determines under subsection (b) that a major 
industrial country has not made concessions under trade agreements 
entered into under this Act which provide substantially equivalent 
competitive opportunities for the commerce of the United States, he 
shall, either generally with respect to such country or by article pro- 
duced by such country, in order to restore equivalence of competitive 
opportunities, recommend to the Congress — 

(1) legislation providing for the termination or denial of the 
benefits of concessions of trade agreements entered into under this 
Act made with respect to rates of duty or other import restrictions 
by the United States ; and 

(2) that any legislation necessary to carry out any trade agree- 
ment under section 102 shall not apply to such country. 

(d) For purposes of this section, "maior industrial country" means 
Canada, the European Economic Community, the individual member 
countries of such Community. Japan, and anv other foreign country 
designated by the President for purposes of this subsection. 

Sec. 127. Reservation of Articles for National Security or Other 
Reasons. 

(a) No proclamation shall be made pursuant to the provisions of 
this Act reducing or eliminating the duty or other import restriction 



16 

on any article if the President determines that such reduction or 
elimination would threaten to impair the national security. 

(b) While there is in effect with respect to any article any action 
taken under section 203 of this Act, or section 232 or 351 of the Trade 
Expansion Act of 1962 (19 U.S.C. 1862 or 1981), the President shall 
reserve such article from negotiations under this title (and from any 
action under section 122(c)) contemplating reduction or elimination 
of — 

( A ) any duty on such article, 

(B) any import restriction imposed under such section, or 

(C) any other import restriction, the removal of which will be 
likely to undermine the effect of the import restrictions referred 
to in subparagraph (B) . 

In addition, the President shall also so reserve any other article which 
he determines to be appropriate, taking into consideration informa- 
tion and advice available pursuant to and with respect to the matters 
covered by sections 131, 132. and 133. where applicable. 

(c) ^ The President shall submit to the Congress an annual report on 
section 232 of the Trade Expansion Act of 1962.^ Within 60 days after 
he takes any action under such section 232, the President shall report 
to the Congress the action taken and the reasons therefor. 

(d) [Amends sec. 232 of the Trade Expansion Act of 1962.*] 

♦ * * * « * ♦ 

Chapter 3 — Hearings and Advice Concerning Negotiations 

Sec. 131. International Trade Commission Advice. 

(a) In connection with any proposed trade agreement under chap- 
ter 1 or section 123 or 124, the President shall from time to time publish 
and furnish the International Trade Commission (hereafter in this 
section referred to as the "Commission") with lists of articles which 
may be considered for modification or continuance of United States 
duties, continuance of United States duty-free or excise treatment, 
or additional duties. In the case of any article with respect to which 
consideration may be given to reducing or increasing the rate of 
duty, the list shall specify the provision of this title pursuant to which 
such consideration may be given. 

(b) Within 6 months after receipt of such a list or. in the case of a 
list submitted in connection with a trade agreement authorized under 
section 123, within 90 days after receipt of such list, the Commission 
shall advise the President with respect to each article of its judgment 
as to the probable economic effect of modifications of duties on indus- 
tries producing like or directly competitive articles and on consumers, 
so as to assist the President in making an informed judgment as to the 
impact which might be caused by such modifications on United States 
manufacturing, agriculture, mining, fishing, labor, and consumers. 
Such advice may include in the case of any article the advice of the 
Commission as to whether any reduction in the rate of duty should 
take place over a longer period than the minimum periods provided 
by section 109(a). 



M9 r.S.C. 1863. 

8 19 U.S.C. 1962. See p. 96 for text. 



17 

(c) In addition, in order to assist the President in his determination 
of whether to enter into any agreement under section 102, the Com- 
mission sliall make such investigations and reports as may be 
requested by the President, including, where feasible, advice as to the 
probable economic effects of modifications of any barrier to (or other 
distortion of) international trade on domestic industries and purchas- 
ers and on prices and quantities of articles in the United States. 

(d) In preparing its advice to the President under this section, the 
Commission shall, to the extent practicable — 

(1) investigate conditions, causes, and effects relating to com- 
petition between the foreign industries producing the articles in 
question and the domestic industries producing the like or directly 
competitive articles ; 

(2) analyze the production, trade, and consumption of each 
like or directly competitive article, taking into consideration 
employment, profit levels, and use of productive facilities with 
respect to the domestic industries concerned, and such other eco- 
nomic factors in such industries as it considers relevant, including 
prices, wages, sales, inventories, patterns of demand, capital 
investment, obsolescence of equipment, and diversification of 
production ; 

(3) describe the probable nature and extent of any significant 
change in employment, profit levels, and use of productive facili- 
ties, and such other conditions as it deems relevant in the domestic 
industries concerned which it believes such modifications would 
cause; and 

(4) make special studies (including studies of real wages paid 
in foreign supplying countries), whenever deemed to be war- 
ranted, of particular proposed modifications affecting United 
States manufacturing, agriculture, mining, fishing, labor, and 
consumers, utilizing to the fullest extent practicable United 
States Government facilities abroad and appropriate personnel 
of the United States. 

(e) In preparing its advice to the President under this section, the 
Commission shall, after reasonable notice, hold public hearings. 

Sec. 132. Advice from Departments and Other Sources. 

Before any trade agreement is entered into under chapter 1 or sec- 
tion 123 or 124. the President shall seek information and advice with 
respect to such agreement from the Departments of Agriculture, Com- 
merce, Defense, Interior, Labor, State and the Treasury, from the 
Special Representative for Trade Negotiations, and from such other 
sources as he may deem appropriate. 

Sec. 133. Public Hearings. 

(a) In connection with any proposed trade agreement under chap- 
ter 1 or section 123 or 124, the President shall afford an opportunity 
for any interested person to present his views concerning any article 
on a list published pursuant to section 131, any article which should be 
so listed, any concession which should be sought by the United States, 
or any other matter relevant to such proposed trade agreement. For 
this purpose, the President shall designate an agency or an interagency 
committee which shall, after reasonable notice, hold public hearings 
and prescribe regulations governing the conduct of such hearings. 



18 

(b) The organization holding such hearings shall furnish the Presi- 
dent with a summary thereof. 

Sec. 134. Prerequisites for Offers. 

In any negotiations seeking an agreement under chapter 1 or section 
123 or 124, the President may make an offer for the modification or 
continuance of any United States duty, import restrictions, or barriers 
to (or other distortions of) international trade, the continuance of 
United States duty-free or excise treatment, or the imposition of addi- 
tional duties, import restriction, or other barrier to (or other distor- 
tion of) international trade, with respect to any article only after he 
has received a summary of the hearings at which an opportunity to be 
heard with respect to such article has been afforded under section 133. 
In addition, the President may make an offer for the modification or 
continuance of any United States duty, the continuance of United 
States duty-free or excise treatment, or the imposition of additional 
duties, with respect to any article included in a list published and 
furnished under section 131(a), only after he has received advice con- 
cerning such article from the International Trade Commission imder 
section 131 (b) , or after the expiration of the 6-month or 90-day period 
provided for in that section, as appropriate, whichever first occurs. 

Sec. 135. Advice from Private Sector. 

(a) The President, in accordance with the provisions of this section, 
shall seek information and advice from representative elements of the 
private sector with respect to negotiating objectives and bargaining 
positions before entering into a trade agreement referred to in section 
101 or 102. 

(b)(1) The President shall establish an Advisory Committee for 
Trade Negotiations to provide overall policy advice on any trade 
agreement referred to in section 101 or 102. The Committee shall be 
composed of not more than 45 individuals, and sliall include repre- 
sentatives of government, labor, industry, agriculture, small business, 
service industries, retailers, consumer interests, and the general public. 

(2) The Committee shall meet at the call of the Special Eepre- 
sentatiye for Trade Negotiations, who shall be the Chairman. The 
Committee shall terminate upon submission of its report required 
under subsection (e)(2). Members of the Committee shall be appointed 
by the President for a period of 2 years and may be reappointed for 
one or more additional periods. 

(3) The Special Kepresentative for Trade Negotiations shall make 
available to the Committee such staff, information, personnel, and 
administrative services and assistance as it may reasonably require to 
carry out its activities. 

(c) (1) The President may, on his own initiative or at the request 
of organizations representing industry, labor, or agriculture, establish 
general policy advisory committees for industry, labor, and agricul- 
ture, respectively, to provide general policy advice on any trade agree- 
ment referred to in section 101 or 102. Such committees shall, insofar 
as practicable, be representative of all industry, labor, or agricultural 
interests (including small business interests), respectively, and shall 
be organized by the President acting through the Special Representa- 
tive for Trade Negotiations and the Secretaries of Commerce, Labor, 
and Agriculture, as appropriate. 



19 

(2) The President shall, on his own initiative or at the request of 
organizations in a particular sector, establish such industry, labor, or 
agricultural sector advisory committees as he determines to be neces- 
sary for any trade negotiations referred to in section 1^1 or l/)2 huch 
committees shall, so far as practicable, be representative of all industry, 
labor, or agricultural interests including small business interests in 
the sector concerned. In organizing such committees the Presulent, 
acting through the Special Representative for Trade Negotiations and 
the Secretary of Commerce, Labor, or Agriculture, as appropri- 
ate, (A) shall consult with interested private organizations, and 
(B) shall take into account such factors as patterns of actual and 
potential competition between United States industry and agriculture 
and foreign enterprise in international trade, the character of the 
nontariff barriers and other distortions affecting such competition, 
the necessity for reasonable limits on the number of such product 
sector advisory committees, the necessity that each committee be 
reasonably limited in size, and that the product lines covered by each 
committee be reasonably related. 

(d) Committees established pursuant to subsection (c) shall meet 
at the call of the Special Representative for Trade Negotiations, 
before and during any trade negotiations, to provide the following: 

( 1 ) pol icy advice on negotiations ; 

(2) technical advice and information on negotiations on par- 
ticular products both domestic and foreign ; and 

(3) advice on other factors relevant to positions of the United 
States in trade negotiations. 

(e)(1) The Advisory Committee for Trade Negotiations, each ap- 
propriate policy advisory committee, and each sector advisory com- 
mittee, if the sector which such committee represents is affected, shall 
meet at the conclusion of negotiations for each trade agreement entered 
into under this Act, to provide to the President, to Congress, and to 
the Special Representative for Trade Negotiations a report on such 
agreement. The report of the Advisory Committee for Trade Negotia- 
tions and each appropriate policy advisory committee shall include 
an advisory opinion as to whether and to what extent the agreement 
promotes the economic interests of the United States and the report of 
the appropriate sector committee shall include an advisory opinion as 
to Avhether the agreement provides for equity and reciprocity within 
the sector. 

(2) The Advisory Committee for Trade Negotiations, each policy 
advisory committee, and each sector advisory committee shall issue 
a report to the Congress as soon as is practical after the end of the 
period which ends 5 years after the date of enactment of this Act. The 
report of the Advisory Committee for Trade Negotiations and each 
policy advisory committee shall include an advisory opinion as to 
whether and to what extent trade agreements entered into under this 
Act, taken as a whole, serve the economic interests of the United States. 
The report of each sector advisory committee shall include an advisory 
opinion on the degree to which trade agreements entered into under 
this Act which affect the sector represented by each such committee, 
taken as a whole, provide for equity and reciprocity within that sector. 

(f ) The provisions of the Federal Advisory Committee Act (Public 
Law 92-^63) » shall apply— 

•au.s.c. App. 1. 



20 

(1) to the Advisory Committee for Trade Negotiations estab- 
lished pursuant to subsection (b) ; and 

(2) to all other advisory committees which may be established 
pursuant to subsection (c) ; except that the meetings of advisory 
groups established under subsection (c) shall be exempt from 
the requirements of subsections (a) and (b) of section 10 and 
section 11 of the Federal Advisory Committee Act (relating to 
open meetings, public notice, public participation, and public 
availability of documents) , whenever and to the extent it is deter- 
mined by the President or his designee that such meetings will 
be concerned with matters the disclosure of which would seriously 
compromise the Government's negotiating objectives or bargain- 
ing positions on the negotiation of any trade agreement. 

(g) (1) (A) Trade secrets and commercial or financial information 
which is privileged or confidential, submitted in confidence by the 
private sector to officers or employees of the United States in connec- 
tion with trade negotiations, shall not be disclosed to any person other 
than to — 

(i) officers and employees of the United States designated by 
the Special Representative for Trade Negotiations, and 

(ii) members of the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate who are accredited as official advisers under section 161 
(a) or are designated by the chairman of either such committee 
under section 161(b) (2), and members of the staff of either such 
committee designated by the chairman under section 161(b) (2), 
for use in connection with negotiation of a trade agreement referred 
to in section 101 or 102. 

(B) Information, other than that described in paragraph (A), 
and advice submitted in confidence by the private sector to officers or 
employees of the United States, to the Advisory Committee for Trade 
Negotiations or to any advisory committee established under sub- 
section (c), in connection with trade negotiations, shall not be dis- 
closed to any person other than — 

(i) the individuals described in subparagraph (A), and 
(ii) the appropriate advisory committees established under this 
section. 
(2) Information submitted in confidence by officers or employees of 
the United States to the Advisory Committee for Trade Negotiations, 
or to any advisory committee established under subsection (c), shall 
not be disclosed other than in accordance with rules issued by the 
Special Representative for Trade Negotiations and the Secretary of 
Commerce, Labor or Agriculture, as appropriate, after consultation 
with the relevant advisory committees established under subsection 
(c). Such rules shall define the (categories of information which re- 
quire restricted or confidential handling by such committee consider- 
ing the extent to which public disclosure of such information can 
reasonably be expected to prejudice United States negotiatinc: objec- 
tives. Such rules shall, to the maximum extent feasible, permit mean- 
ingful consultations by advisory committee members with persons 
affected by proposed trade agreements. 

(h) The Special Representative for Trade Negotiations, and the 
Secretary of Commerce, Labor, or Agriculture, as appropriate, shall 



21 

provide such staff, information, personnel, and administrative services 
and assistance to advisory committees established pui*siiant to sub- 
section (c) as such committees may reasonably require to carry out 
their activities. 

(i) It shall be the responsibility of the Special Representative for 
Trade Xefrotiations, in conjunction with the Secretary of Conuiierce, 
Labor, or A<rriculture, as appropriate, to adopt procedures for con- 
sultation with and obtainin^r information and advice from the advi- 
sory committees established pursuant to subsection (c) on a continuin<r 
and timely basis, both during preparation for ne<rotiations and actual 
negotiations. Such consultation shall include the provision of informa- 
tion to each advisory committee as to (1 ) significant issues and develop- 
ments arising in preparation for or in the coui*se of such negotiations, 
and (2) overall negotiating objectives and positions of the United 
States and other parties to the negotiations. The Special Repre- 
sentative for Trade Negotiations shall not be bound by the advice or 
recommendations of such advisory committees but the Special Repre- 
sentative for Trade Negotiations shall inform the advisory committees 
of failures to accept such advice or recommendations, and the President 
shall include in his statement to the Congress, required by section 163, 
a report by the Special Representative for Trade Negotiations on con- 
sultation with such committees, issues involved in such consultation, 
and the reasons for not accepting advice or recommendations. 

(j) In addition to any advisory committee established pursuant 
to this section, the President shall provide adequate, timely and con- 
tinuing opportunity for the submission on an informal and, if such 
information is submitted under the provisions of subsection (g), 
confidential basis by private organizations or groups, representing 
labor, industry, agriculture, small business, service industries, con- 
sumer interests, and others, of statistics, data, and other trade 
information, as well as policy recommendations, pertinent to the 
negotiation of any trade agreement referred to in section 101 or 102. 

(k) Nothing contained in this section shall be construed to authorize 
or permit any individual to participate directly in any negotiation of 
any trade agreement referred to in section 101 or 102. 

Chapter 4 — Office of the Special Representative for Trade 

Negotiatioxs 

Sec. 141. OflRce of the Special Representative for Trade 
Negotiations. 

(a) There is estnbliphed within the Executive Office of the Presi- 
dent the Office of the Special Representative for Trade Negotiations 
(hereinafter in this section referred to as the "Office") . 

(b) (1) The Office shall be headed by the Special Representative 
for Trade Negotiations who shall be appointed by the President, by 
and with the advice and consent of the Senate. As an exercise of the 
rulemaking power of the Senate, any nomination of the Special Rep- 
resentative for Trade Negotiations submitted to the Senate for con- 
firmation, and referred to a committee, shall be referred to the 
Committee on Finance. The Special Representative for Trade Nego- 
tiations shall hold office at the pleasure of the President, shall be 



22 

entitled to receive the same allowances as a chief of mission, and shall 
have the rank of Ambassador Extraordinary and Plenipotentiary. 

(2) There shall be in the Office two Deputy Special Representatives 
for Trade Negotiations who shall be appointed by the President, by 
and with the advice and consent of the Senate. As an exercise of the 
rulemaking power of the Senate, any nomination of a Deputy Special 
Representative submitted to the Senate for confirmation, and referred 
to a committee, shall be referred to the Committee on Finance. Each 
Deputy Special Representative for Trade Negotiations shall hold 
office at the pleasure of the President and shall have the rank of 
Ambassador. 

(3) (A) Section 5312 of title 5, United States Code, is amended by 
adding at the end thereof the following new paragraph : 

" (13) Special Representative for Trade Negotiations." 
(B) Section 5314 of such title is amended by adding at the end 
thereof the following new paragraph : 

"(60) Deputy Special Representatives for Trade Negotiations 

(c) (1) The Special Representative for Trade Negotiations shall — 

(A) be the chief representative of the United States for each 
trade negotiation under this title or section 301 ; 

(B) report directly to the President and the Congress, and be 
responsible to the President and the Congress for the administra- 
tion of trade agreements programs under this Act, the Trade 
Expansion Act of 1962,^^ and section 350 of the Tariff Act of 
1930; 

(C) advise the President and Congress with respect to nontariff 
barriers to international trade, international commodity agree- 
ments, and other matters which are related to the trade agree- 
ments programs ; 

(D) be responsible for making reports to Congress with respect 
to the matter set forth in subparagraphs (A) and (B) : 

(E) be chairman to the interagency trade organization estab- 
lished pursuant to section 242(a) of the Trade Expansion Act of 
1962"; and 

(F) be responsible for such other fimctions as the President 
may direct. 

(2) Each Deputy Special Representative for Trade Negotiation 
shall have as his principal function the conduct of trade negotiations 
under this Act and shall have such other functions as the Special 
Representative for Trade Negotiations may direct. 

(d) The Special Representative for Trade Negotiations may, for 
the purpose of carrying out his functions under this section — 

(1) subject to the civil service and classification laws, select, 
appoint, employ, and fix the compensation of such officers and 
employees as are necessary and prescribe their authority and 
duties; 

(2) employ experts and consultants in accordance with section 
3109 of title 5. United States Code, and compensate individuals 
so employed for each day (including traveltime) at rates not in 
excess of the maximum rate of pav for jrrade GS-18 as provided 
in section 5332 of title 5. United States Code, and while such 



10 19 U.S.C. 1801. See p. 95 for text. 
" 19 U.S.C. 1872. See p. 97 for text. 



23 

experts and consultants are so serving away from their homes or 
refi^ular place of business, to pay such employees travel expenses 
and per diem in lieu of subsistence at rates authorized by section 
5703 of title 5, United States Code, for persons in Government 
service employed intermittently ; 

(3) promulgate such rules and re^ilations as may be necessary 
to carry out the functions vested in him ; 

(4) utilize, with their consent, the services, personnel, and facil- 
ities of other Federal agencies ; 

(5) enter into and perform such contracts, leases, cooperative 
agreements, or other transactions as may be necessary in the 
conduct of the work of the Office and on such terms as the 
Special Representative for Trade Negotiations may deem appro- 
priate, with any agency or instrumentality of the United States, 
or with any public or private person, firm, association, corpo- 
ration, or institution ; 

(6) accept voluntary and uncompensated services, notwithstand- 
ing the provisions of section 3679(b) of the Revised Statutes 
(31 U.S.C. 665(b)); and 

(7) adopt an official seal, which shall be judicially noticed. 

(e) The Special Representative for Trade Negotiations shall, to 
the extent he deems it necessary for the proper administration and 
execution of the trade agreements programs of the United States, 
draw upon the resources of, and consult with. Federal agencies in 
connection with the performance of his functions. 

(f) There are authorized to be appropriated to the Office of Spe- 
cial Representative for Trade Negotiations such amounts as may 
be necessary for the purpose of carrying out its functions for fiscal 
year 1976 and each fiscal year thereafter any part of which is within 
the 5-year period beginning on the date of the enactment of this Act. 

(g) (1) The Office of Special Representative for Trade Negotiations 
established under Executive Order No. 11075 of January 15, 1963, as 
amended.^2 jg abolished. 

(2) The assets, liabilities, contracts, property, and records and 
unexpended balances of appropriations, authorizations, allocations, 
and other funds employed, held, used, arising from, or available to 
such Office are transferred to the Office of Special Representative for 
Trade Negotiations established under subsection (a) of this section. 

(h)(1) Any individual who holds the position of Special Repre- 
sentative for Trade Negotiations or a pasition as Deputy Special 
Representative for Trade Negotiations on the day before the date of 
enactment of this Act and who has been appointed by and with the 
advice and consent of the Senate may continue to hole! such position 
without regard to the first sentence of paragraph (1) of subsection 
^b), or the first sentence of paragraph (2) of subsection (b), as the 
case may be. 

(2) All personnel who on the dav before the date of the enactment 
of this Act are employed by the Office of the Special Representative 
for Trade Negotiations established by Executive Order No. 11075 
of January 15, 1963. as amended." are hereby transferred to the Office 

"i<» r sr 1R01 not* 



24 

Chapter 6 — Congressional Procedures With Bespect to 
Presidentlalt Actions 

Sec. 151. Bills Implementing Trade Agreements of Nontariff 
Barriers and Resolutions Approving Commercial Agreements 
With Communist Countries. 

(a) Bules of House of Bepresentatives and Senate. — This section 
and sections 152 and 163 are enacted by the Congress — 

(1) as an exercise of the rulemaking power of the House of 
Bepresentatives and the Senate, respectively, and as such they are 
deemed a part of the rules of each House, respectively, but appli- 
cable only with respect to the procedure to be followed in that 
House in the case of implementing bills described in subsection 
(b)(1), implementing revenue bills described in subsection 

(b) (2), approval resolutions described in subsection (b) (3), and 
resolutions described in subsections 152(a) and 153(a) ; and they 
supersede other rules only to the extent that they are inconsistent 
therewith; and 

(2) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of that House. 

(b) Definitions. — For purposes of this section — 

(1) The term "implementing bill" means only a bill of either 
House of Congress which is introduced as provided in subsection 

(c) with respect to one or more trade agreements submitted to 
the House of Bepresentatives and the Senate under section 102 
and which contains — 

(A) a provision approving such trade agreement or agree- 
ments, 

(B) a provision approving the statement of administrative 
action (if any) proposed to implement such trade agreement 
or agreements, and 

(C) if changes in existing laws or new statutory authority 
is required to implement such trade agreement or agreements, 
provisions, necessary or appropriate to implement such trade 
agreement or agreements, either repealing or amending exist- 
ing laws or providing new statutory authority. 

(2) The term "implementing revenue bill" means an imple- 
menting bill which contains one or more revenue measures by 
reason of which it must orisrinate in the House of Representatives. 

(3) The term "approval resolution" means only a concurrent 
resolution of the two Houses of the Congress, the matter after the 
resolving clause of which is as follows: "That the Congress 
approves the extension of nondiscriminatory treatment with re- 
spect to the products of transmitted by the Presi- 
dent to the Congress on — .", the first blank space being 

filled with the name of the country involved and the second blank 
space being filled with the appropriate date. 

(c) TXTRODTTCTTON ANoRf.FERRAT,. — 

(1) On the day on which n trade asTreement is submitted to the 
Honse of Representatives and the Senate under section 102. the 
implementing bill submitted by the President with respect to such 
trade agreement shall be introiduced (by request) in the House by 



25 

the majority leader of the House, for himself and the minority 
leader of the House, or by Members of the House designated bv 
the majority leader and minority leader of the House; and shall 
bo introduced (by re(|uost) in the Senate by the majority leader of 
the Senate, for himself and the minority leader of the Senate, or 
by Members of the Senate desi<j:nated by tlie majority leader and 
minority leader of the Senate. If either House is not in session 
on the day on which such a trade agreement is submitted, the im- 
plementing bill shall be introduced in that House, as provided in 
the preceding sentence, on the first day thereafter on which that 
House is in session. Such bills shall be referred by the Presiding 
Officers of the respective Houses to the appropriate committee, or, 
in the case of a bill containing provisions within the jurisdiction 
of two or more committees, jointly to such committees for consid- 
eration of those provisions within their respective jurisdictions. 

(2) On the day on whicli a bilateral commercial agreement, 
entered into under title IV of this Act after the date of the en- 
actment of this Act, is transmitted to the House of Representa- 
tives and the Senate, an approval resolution with respect to such 
agreement shall be introduced (by re(iuest) in the House by the 
majority leader of the House, for himself and the minority leader 
of the House, or by Members of the House designated by the ma- 
jority leader and minority leader of the House ; and shall be intro- 
duced (by request) in the Senate by the majority leader of the 
Senate, for himself and the minority leader of the Senate, or by 
Members of the Senate designated by the majority leader and 
minority leader of the Senate. If either House is not in session on 
the day on which such an agreement is transmitted, the approval 
resolution with respect to such agreement shall be introduced in 
that House, as provided in the preceding sentence, on the first day 
thereafter on which that House is in session. The approval resolu- 
tion introduced in the House shall be referred to the Committee 
on Ways and Means and the approval resolution introduced in the 
Senate shall be referred to the Committee on Finance. 

(d) Amendments PROHiBriED. — No amendment to an implementing 
bill or approval resolution shall be in order in either the House of 
Representatives or the Senate ; and no motion to suspend the applica- 
tion of this subsection shall be in order in either House, nor shall it 
be in order in either House for the Presiding Officer to entertain a 
request to suspend the application of this subsection by unanimous 
consent. 

(e) Period for Committee and Floor CoNsroERATiON. — 

(1) Except as provided in paragraph (2), if the committee or 
committees of either House to which an implementing bill or 
approval resolution has been referred have not reported it at the 
close of the 45th day after its introduction, such committee or 
committees shall be automatically discharged from further con- 
sideration of the bill or resolution and it shall be placed on the 
appropriate calendar. A vote on final passage of the bill or reso- 
lution shall be taken in each House on or before the close of the 
15th day after the bill or resolution is reported by the committee 
or committees of that House to which it was referred, or after 
such committee or committees have been discharged from further 



20-594 O - 78 - 3 



26 

consideration of the bill or resolution. If prior to the passage by 
one House of an implementing bill or approval resolution of that 
House, that House receives the same implementing bill or approval 
resolution from the other House, then — 

(A) the procedure in that House shall be the same as if no 
implementing bill or approval resolution had been received 
from the other House ; but 

(B) the vote on final passage shall be on the implementing 
bill or approval resolution of the other House. 

(2) The provisions of paragraph (1) shall not apply in the 
Senate to an implementing revenue bill. An implementing reve- 
nue bill received from the House shall be referred to the appro- 
priate committee or committees of the Senate. If such committee 
or committees have not reported such bill at the close of the 15th 
day after its receipt by the Senate (or, if later, before the close of 
the 45th day after the corresponding implementing revenue bill 
was introduced in the Senate), such committee or committees 
shall be automatically discharged from further consideration of 
such bill and it shall be placed on the calendar. A vote on final 
passage of such bill shall be taken in the Senate on or before the 
close of the 15th day after such bill is reported by the committee 
or committees of the Senate to which it was referred, or after such 
committee or committees have been discharged from further con- 
sideration of such bill. 

(3) For purposes of paragraphs (1) and (2), in computing a 
number of days in either House, there shall be excluded any day 
on which that House is not in session. 

(f) Floor Consideration in the House. — 

(1) A motion in the House of Representatives to proceed to 
the consideration of an implementing bill or approval resolution 
shall be highly privileged and not debatable. An amendment to 
the motion shall not be in order, nor shall it be in order to move 
to reconsider the vote by which the motion is agreed to or dis- 
agreed to. 

(2) Debate in the House of Representatives on an implement- 
ing bill or approval resolution shall be limited to not more than 
20 hours, which shall be divided equally between those favoring 
and those opposing the bill or resolution. A motion further to 
limit debate shall not be debatable. It shall not be in order to 
move to recommit an implementing bill or approval resolution 
or to move to reconsider the vote by which an implementing bill 
or approval resolution is agreed to or disagreed to. 

(3) Motions to postpone, made in the House of Representa- 
tives with respect to the consideration of an implementing bill 
or approval resolution, and motions to proceed to the considera- 
tion of other business, shall be decided without debate. 

(4) All appeals from the decisions of the Chair relating to the 
application of the Rules of the House of Representatives to the 
procedure relating to an implementing bill or approval resolution 
shall be decided without debate. 

(5) Except to the extent specifically provided in the preceding 
provisions of this subsection, consideration of an implementing 
bill or approval resolution shall be governed by the Rules of the 



27 

House of Representatives applicable to other bills and resolutions 
in similar circumstances, 
(g) Floor Consideratiox ix the Senate. — 

(1) A motion in the Senate to proceed to the consideration of 
an implementing bill or approval resolution shall bo priviloged 
and not debatable. An amendment to the motion shall not be in 
order, nor shall it be in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to. 

(2) Debate in the Senate on an implementing bill or approval 
resolution, and all debatable motions and appeals in connection 
therewith, shall be limited to not more than 20 hours. The^ time 
shall be equally divided between, and controlled by, the majority 
leader and the minority leader or their designees. 

(3) Debate in the Senate on any debatable motion or appeal in 
connection with an implementing bill or approval resolution shall 
be limited to not more than 1 hour, to be equally divided between, 
and controlled by, the mover and the manager of tlie bill or reso- 
lution, except that in the event the manager of the bill or resolu- 
tion is in favor of any such motion or appeal, the time in 
opposition thereto, shall be controlled by the minority leader or 
his designee. Such leaders, or either of them, may, from time under 
their control on the passage of an implementing bill or approval 
resolution, allot additional time to any Senator during the con- 
sideration of any debatable motion or appeal. 

(4) A motion in the Senate to further limit debate is not debat- 
able. A motion to recommit an implementing bill or approval 
resolution is not in order. 

Sec. 152. Resolutions Disapproving Certain Actions. 

(a) Contents of Resolutions. — 

(1) For purposes of this section, the term "resolution" means 
only— 

(A) a concurrent resolution of the two Houses of the Con- 
gress, the matter after the resolving clause of which is as 

follows: "That the Congress does not approve 

transmitted to the Congress on ", the first blank 

space being filled in accordance with paragraph (2) and the 
second blank space being filled with the appropriate date; 
and 

(B) a resolution of either House of the Congress, the mat- 
ter after the resolving clause of which is as follows : "That 

the does not approve transmitted 

to the Congress on ", with the first blank space 

being filled with the name of the resolving House, the second 
blank space being filled in accordance with paragraph (3). 
and the third blank space being filled with the appropriate 
date. 

(2) The first blank space referred to in paragraph (1)(A) 
shall be filled as follows: 

(A) in the case of a resolution referred to in section 203(c), 
with the phrase "the action taken by, or the determination of. 
the President under section 203 of the Trade Act of 1974": 
and 



2S 

(B) in the case of a resolution referred to in section 302(b) , 
with the phrase "the action taken by the President under 
section 301 of the Trade Act of 1974". 
(3) The second blank space referred to in paragraph (1) (B) 
shall be filled as follows : 

(A) in the case of a resolution referred to in section 303 (e) 
of the Tariff Act of 1930," with the phrase "the determina- 
tion of the Secretary of the Treasury under section 303(d) 
of the Tariff Act of 1930" ; 

(B) in the case of a resolution referred to in section 407 
(c) (2), with the phrase "the extension of nondiscriminatory 

treatment with respect to the products of " (with 

this blank space being filled with the name of the country 
involved) ; and 

(C) in the case of a resolution referred to in section 
407(c) (3), with the phrase "the report of the President sub- 
mitted under section of the Trade Act of 1974 

with respect to " (with the first blank space 

being filled with "402(b)" or "409(b)", as appropriate, and 
the second blank space being filled with the name of the 
country involved). 

(b) References to Committees. — All resolutions introduced in 
the House of Representatives shall be referred to the Committee on 
Ways and Means and all resolutions introduced in the Senate shall 
be referred to the Committee on Finance. 

(c) Discharge of Committees. — 

( 1 ) If the committee of either House to which a resolution has 
been referred has not reported it at the end of 30 days after its 
introduction, not counting any day which is excluded under sec- 
tion 153(b), it is in order to move either to discharge the com- 
mittee from further consideration of the resolution or to discharge 
the committee from further consideration of any other resolution 
introduced with respect to the same matter, except no motion 
to discharge shall be in order after the committee has reported a 
resolution with respect to the sam.e matter. 

(2) A motion to discharge under paragraph (1) may be made 
only by an individual favoring the resolution, and is highly 
privileged in the House and privileged in the Senate : and debate 
thereon shall be limited to not more than 1 hour, the time to be 
divided in the House equally between those favoring and those 
opposing the resolution, and to be divided in the Senate equally 
between, and controlled by, the majority leader and the minority 
leader or their designees. An amendment to the motion is not 
in order, and it is not in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to. 

(d) Floor Consideration in the House. — 

(1) A motion in the House of Representatives to proceed to 
the consideration of a resolution shall be highly privileged and 
not debatable. An amendment to the motion shall not be in order, 
nor shall it be in order to move to reconsider the vote by which 
the motion is agreed to or disagreed to. 

" 1© U.S.C. 1803. 



29 

(2) Debate in the House of Representatives on a resolution 
shall be limited to not more than 20 hours, which shall be divided 
equally between those favoring and those opposing the resolu- 
tion. A motion further to limit debate shall not be debatable. No 
amendment to, or motion to recommit, the resolution shall be in 
order. It shall not be in order to move to reconsider the vote 
by which a resolution is agreed to or disagreed to. 

(3) Motions to postpone, made in the House of Representatives 
with respect to the consideration of a resolution, and motions to 
proceed to the consideration of other business, shall be decided 
without debate. 

(4) All appeals from the decisions of the Chair relating to 
the application of the Rules of the House of Representatives to 
the procedure relating to a resolution shall be decided without 
debate. 

(6) Except to the extent specifically provided in the preceding 
provisions of this subsection, consideration of a resolution in the 
House of Representatives shall be governed by the Rules of the 
House of Representatives applicable to other resolutions in similar 
circumstances. 

(e) Floor CoNsroERATioN in the Senate. — 

(1) A motion in the Senate to proceed to the consideration of a 
resolution shall be privileged. An amendment to the motion shall 
not be in order, nor shall it be in order to move to reconsider the 
vote by which the motion is agreed to or disagreed to. 

(2) Debate in the Senate on a resolution, and all debatable 
motions and appeals in connection therewith, shall be limited to 
not more than 20 hours, to be equally divided between, and con- 
trolled by, the majority leader and the minority leader or their 
designees. 

(3) Debate in the Senate on any debatable motion or appeal in 
connection with a resolution shall be limited to not more than 1 
hour, to be equally divided between, and controlled by, the mover 
and the manager of the resolution, except that in tne event the 
manager of the resolution is in favor of any such motion or appeal, 
the time in opposition thereto, shall be controlled by the minority 
leader or his designee. Such leaders, or either of them, may, from 
time under their control on the passage of a resolution, allot addi- 
tional time to any Senator during the consideration of any debat- 
able motion or appeal. 

(4) A motion in the Senate to further limit debate on a resolu- 
tion, debatable motion, or appeal is not debatable. No amendment 
to, or motion to recommend a resolution is in order in the Senate. 

(f) Special Rule for Concurrent Resolutions. — In the case of a 
resolution described in subsection (a) (1) . if prior to the passage by one 
House of a resolution of that House, that House receives a resolution 
with respect to the same matter from the other House, then — 

f 1) the procedure in that House shall be the same as if no reso- 
lution had been received from the other House : but 

(2) the vote on final passage shall be on the resolution of the 
other House. 



30 

Sec. 153. Resolutions Relating to Extension of Waiver Authority 
Under Section 402. 

(a) Contents of Resolutions. — For purposes of this section, the 
term "resolution" means only — 

(1) a concurrent resolution of the two Houses of the Congress, 
the matter after the resolving clause of which is as follows: 
"That the Congress approves the extension of the authority con- 
tained in section 402 (c) (1) of the Trade Act of 1974 recommended 
by the President to the Congress on , except with re- 
spect to ■', with the first blank space being filled with 

the appropriate date and the second blank space being filled with 
the names of those countries, if any, with respect to which such 
extension of authority is not approved, and with the except clause 
being omitted if there is no such country ; and 

(2) a resolution of either House of the Congress, the matter 
after the resolving clause of which is as follows: "That the 
does not approve the extension of the authority con- 
tained in section 402(c) of the Trade Act of 1974 recommended by 

the President to the Congress on with respect to 

", with the first blank space being filled with the 

name of the resolving House, the second blank space being filled 
with the appropriate date, and the third blank space being filled 
with the names of those countries, if any, with respect to which 
such extension of authority is not approved, and with the with- 
respect-to clause being omitted if the extension of the authority is 
not approved with respect to any country. 

(b) Application of Rules of Section 152 ; Exceptions. — 

(1) Except as provided in this section, the provisions of sec- 
tion 152 shall apply to resolutions described in subsection (a). 

(2) In applying section 152(c)(1), all calendar days shall 
be counted, and, in the case of a resolution related to section 
402(d)(4), 20 calendar days shall be substituted for 30 days. 

(3) That part of section 152(d)(2) which provides that no 
amendment is in order shall not apply to any amendment to a 
resolution which is limited to striking out or inserting the names 
of one or more countries or to striking out or inserting an except 
clause, in the case of a resolution described in subsection (a) (1), 
or a with-respect-to-clause, in the case of a resolution described 
in subsection (a) (2). Debate in the House of Representatives on 
any amendment to a resolution shall be limited to not more than 
1 hour which shall be equally divided between those favoring and 
those opposing the amendment. A motion in the House to further 
limit debate on an amendment to a resolution is not debatable. 

(4) That part of section 152(e) (4) which provides that no 
amendment is in order shall not apply to any amendment to a 
resolution which is limited to striking out or inserting the names 
of one or more countries or to striking out or inserting an 
except clause, in the case of a resolution described in subsection 
(a)(1), or a with-respect-to clause, in the case of a resolution 
described in subsection (a)(2). The time limit on a debate on 
a resolution in the Senate under section 152(e) (2) shall include 
all amendments to a resolution. Debate in the Senate on any 
amendment to a resolution shall be limited to not more than 1 



31 

hour, to ho (M|ually divided hotwcuMi, and rontrollod hy, tho mover 
and the manager of the resolution, except that in the event the 
manager of the resolution is in favor of any such amendment, 
the time in opposition thereto shall be controlled by the minority 
leader or his designee. The majority leader and minority leader 
may, from time under their control on the passage of a resolution, 
allot additional time to any Senator during the consideration of 
any amendment. A motion in the Senate to further limit debate 
on an amendment to a resolution is not debatable, 
(c) Consideration of Skcond Resolution Not in Order. — It shall 
not be in order in either the House of Representatives or the Senate 
to consider a resolution with respect to a recommendation of the Presi- 
dent under section 402(d) (other than a resolution described in sub- 
section (a)(1) received JFrom the other House), if that House has 
adopted a resolution with respect to the same recommendation. 

Sec. 154. Special Rules Relating to Congressional Procedures. 

(a) Whenever, pursuant to section 102(e), 203(b), 302(a), 402(d), 
or 407 (a) or (b), section 303(e) of the Tariff Act of 1930, a docu- 
ment is required to be transmitted to the Congress, copies of such 
document shall be delivered to both Houses of Congress on the same 
day and shall be delivered to the Clerk of the House of Representatives 
if the House is not in session and to the Secretary of the Senate if the 
Senate is not in session. 

(b) For purposes of sections 203(c), 302(b), 407(c)(2), and 407 
(c) (3), the 90-day period referred to in such sections shall be com- 
puted by excluding — 

( 1 ) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain or an adjourn- 
ment of the Congress sine die, and 

(2) any Saturday and Sunday, not excluded under paragraph 
(1) , when either House is not in session. 

Chapter 6 — Congressional Liaison and Reports 

Sec. 161. Congressional Delegates to Negotiations. 

(a) At the beginning of each regular session of Congress, the Speaker 
of the House of Representatives, upon the recommendation of the 
chairman of the Committee on Ways and INIeans. shall select five m.em- 
bers (not more than three of whom are members of the same political 
party) of such committee, and the President pro tempore of the Senate, 
upon the recommendation of the chairman of the Committee on 
Finance, shall select five members (not more than three of whom are 
members of the same political party) of such committee, who shall be 
accredited by the President as official advisers to the United States 
delegations to international conferences, meetings, and negotiation 
sessions relating to trade agreements. 

(b) (1) The Special Representative for Trade Negotiation shall keep 
each official adviser currently informed on United States negotiating 
objectives, the status of negotiations in progress, and the nature of 
any changes in domestic law or the administration thereof which may 
be recommended to Congress to carry ovt any trade agreement. 

(2) The chairmen of the Committee on Ways and Means and the 
Committee on Finance may designate members (in addition to the 



32 

official advisors under subsection (a)) and staff members of their 
respective committees who shall have access to the information pro- 
vided to official advisers under paragraph ( 1 ) . 

Sec. 162. Transmission of Agreements to Congress. 

(a) As soon as practicable after a trade agreement entered into 
under chapter 1 or section 123 or 124 has entered into force with 
respect to the United States, the President shall, if he has not previ- 
ously done so, transmit a copy of such trade agreement to each House 
of the Congress together with a statement, in the light of the advice 
of the International Trade Commission under section 131(b), if any, 
and of other relevant considerations, of his reasons for entering into 
the agreement. 

(b) The President shall transmit to each Member of the Congress 
a summary of the information required to be transmitted to each 
House under subsection (a). For purposes of this subsection, the 
term "Member" includes any Delegate or Resident Commissioner. 

Sec. 163. Reports. 

(a) The President shall submit to the Congress an annual report 
on the trade agreements program and on import relief and adjustment 
assistance for workers, tirms, and communities under this Act. Such 
report shall include information regarding new negotiations ; changes 
made in duties and nontariff: barriers and other distortions of trade 
of the United States; reciprocal concessions obtained; changes in 
trade agreements (including the incorporation therein of actions talien 
for import relief and compensation provided therefor) ; extension 
or withdrawal of nondiscriminatory treatment by the United States 
with respect to the products of a foreign country; extension, modifi- 
cation, withdrawal, suspension, or limitation of preferential treatment 
to exports of developing countries; the results of action taken to 
obtain removal of foreign trade restrictions (including discriminatory 
restrictions) against United States exports and the removal of foreign 
practices which discriminate against United States service industries 
(including transportation and tourism) and investment; and the 
measures being taken to seek the removal of other significant foreign 
import restrictions ; and other information relating to the trade agree- 
ments program and to the agreements entered into thereunder. Such 
report shall also include information regarding the number of appli- 
cations filed for adjustment assistance for workers, firms, and commu- 
nities, the number of such applications which were approved, and 
the extent to which adjustment assistance has been provided under 
such approved applications. 

(b) The International Trade Commission shall submit to the Con- 
gress, at least once a year, a factual report on the operation of the 
trade agreements program. 

Chapter 7 — ^United States International Trade Commission 

Sec. 171. Change of Name of Tariff Commission. 

(a) The United States Tariff Commission (established by section 
330 of the Tariff Act of 1930 ") is renamed as the United States Inter- 
national Trade Commission. 



" 19 U.S.C. 1880. 



33 

(b) Any reference in any law of the United States, or in any order, 
rule, regulation, or other document, to the United States Tariff Com- 
mission (or the Tariff Commission) shall be considered to refer to 
the United States International Trade Commission. 

Sec. 172. Organization of the Commission. 

(a) Subsections (a) and (b) of section 8.30 of tlic Tariff Act of 
1930 (19 U.S.C. 1330) are amended to read as follows: 

"(a) Membership. — The United States International Trade Com- 
mission (referred to in this title as the "Commission") shall be com- 
posed of six commissioners who shall be appointed by the President, 
by and with the advice and consent of the Senate. No person shall be 
eligible for appointment as a commissioner unless he is a citizen of 
the United States, and, in the judgment of the President, is possessed 
of qualifications requisite for developing expert knowledge of inter- 
national trade problems and efficiency in administering the duties 
and functions of the Commission. A person who has served as a 
commissioner for more than 5 years (excluding service as a commis- 
sioner before the date of the enactment of tlie Trade Act of 1974) 
shall not be eligible for reappointment as a commissioner. Not more 
than three of the commissioners shall be members of the same political 
party, and in making appointments members of different political 
parties shall be appointed alternately as nearly as may be practicable. 
"(b) Terms of Office. — The terms of office of the commissioners 
holding office on the date of the enactment of the Trade Act of 1974 
which (but for this sentence) would expire on June 16, 1975, June 16, 
1976, June 16, 1977, June 16, 1978, June 16, 1979, and June 16, 1980, 
shall expire on December 16. 1976, June 16. 1978. December 16, 1979, 
June 16, 1981, December 16, 1982, and June 16, 1984, respectively. 
The term of office of each commissioner appointed after such date 
shall expire 9 years from the date of the expiration of the term for 
which his predecessor was appointed, except that any commissioner 
appointed to fill a vacancy occurring prior to the expiration of the 
term for which his predecessor was appointed shall be appointed for 
the remainder of such term." 

(b) Subsection (c) of such section is amended — 

(1) by striking out "The" in the first sentence and inserting 
in lieu thereof "(1) Except as provided in paragraph (2), the"; 
and 

(2) by adding at the end thereof the following new paragraph : 
"(2) Effective on and after June 17, 1975, the commissioner whose 

term is first to expire and who has at least 18 months remaining in his 
terni shall serve as chairman during the last 18 months of his term (or, 
m the case of a commissioner appointed to fill a vacancy occurring 
during such 18-month period, during the remainder of his term), and 
the commissioner whose term is second to expire and who has at least 
36 months remaining in his term shall serve as vice chairman during 
the same 18-month period (or, in the case of a commissioner appointed 
to tilJ a vacancy occurring during such 18-month period, during the 
remainder of such 18-month period)." 

(c) (1) Section 5314 of title 5, United States Code, is amended by 

adding at the end thereof the following new paragraph: 

. (pl). Chairman, United States International Trade Com- 
mission." 



34 

(2) Section 6315 of such title is amended by striking out paragraph 
(24) and inserting in lieu thereof the following : 

"(24) Members, United States International Trade Com- 
mission." 

(3) Section 6316 of such title is amended by striking out para- 
graph (93). ^ t^ 

Sec. 173. Voting Record of Commissioners. 

Section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) is 
amended — 

(1) by striking out "and" before "a summary", and 

(2) by inserting before the period at the end ", and a list of all 
votes taken by the commission during the year, showing those 
commissioners voting in the affirmative and the negative on each 
vote and those commissioners not voting on each vote and the 
reasons for not voting". 

Sec. 174. Representation in Court Proceedings. 

Section 333(c) of the Tariff Act of 1930 (19 U.S.C. 1333(c)) is 
amended — 

(1) by strildng out "Upon application of the Attorney Gen- 
eral of the United States, at" in subsection (c) and inserting in 
lieu thereof "At", and 

(2) by adding at the end thereof the following new subsection: 
"(g) Representation in Court Proceedings. — The Commission 

shall be represented in all judicial proceedings by attorneys who are 
employees of the commission or, at the request of the commission, by 
the Attorney General of the United States." 

Sec. 175. Independent Budget and Authorization of Appropria- 
tions. 

(a)(1) Effective with respect to the fiscal year beginning Octo- 
ber 1, 1976, for purposes of the Budget and Accounting Act, 1921 (31 
U.S.C. 1 et seq.), estimated expenditures and proposed appropria- 
tions for the United States International Trade Commission shall be 
transmitted to the President on or before October 15 of the year 
preceding the beginning of each fiscal year and shall be included by 
him in the Budget witnout revision, and the Commission shall not 
be considered to be a department or establishment for purposes of 
such Act. 

(2) Section 3679 of the Revised Statutes (31 U.S.C. 665) is amended 
by inserting "the United States International Trade Commission," 
before ", or the District of Columbia" each place it appears in sub- 
sections (d) and (g). 

(b) Section 330 of the Tariff Act of 1930 (19 U.S.C. 1330) is 
amended by adding at the end thereof the following new subsection : 

" (e) Authorization of Appropriations. — For the fiscal year besrin- 
ning October 1, 1976, and each fiscal year thereafter, there are author- 
ized to be appropriated to the Commission only such sums as may 
hereafter be provided by law.". 

(c) (1) Paragraph (2) is enacted as an exercise of the rulemaking 
power of the Senate and with full recognition of the constitutional 
right of the Senate to change its rules at any time. 



35 

(2) Paragraph 6(a) of rule XVI of the Standing Rules of the 
Senate is amended by adding at the end of the table contained therein 
the following : 
"Committee on Finance For the International Trade Commission.". 

TITLE II— RELIEF FROM INJURY CAUSED BY IMPORT 

COMPETITION 

Chapter 1 — Import Relief 

Sec. 201. Investigation by International Trade Commission. 

(a) (1) A petition for eligibility for import relief for the purpose 
of facilitating orderly adjustment to import competition may be filed 
with the International Trade Commission (hereinafter in this chapter 
referred to as the "Commission'') by an entity, including a trade asso- 
ciation, firm, certified or recognized union, or group of workers, which 
is representative of an industry. The petition shall include a statement 
describing the specific purposes for which import relief is being 
sought, which may include such objectives as facilitating the orderly 
transfer of resources to alternative uses and other means of adjust- 
ment to new conditions of competition. 

(2) Whenever a petition is filed under this subsection, the Commis- 
sion shall transmit a copy thereof to the Special Representative for 
Trade Negotiations and the agencies directly concerned. 

(b)(1) Upon the request of the President or the Special Representa- 
tive for Trade Negotiations, upon resolution of either the Committee 
on Ways and Means of the House of Representatives or the Committee 
on Finance of the Senate, upon its own motion, or upon the filing of a 
petition under subsection (a) (1), the Commission shall promptly make 
an investigation to determine whether an article is being imported into 
the United States in such increased quantities as to be a substantial 
cause of serious injury, or the threat thereof, to the domestic industry 
producing an article like or directly competitive with the imported 
article. 

(2) In making its determinations under paragraph (1), the Com- 
mission shall take into account all economic factors which it considers 
relevant, including (but not limited to) — 

(A) with respect to serious injury, the significant idling of 
productive facilities in the industry, the inability of a significant 
number of firms to operate at a reasonable level of profit, and sig- 
nificant unemployment or underemployment within the industry : 

(B) with respect to threat of serious injury, a decline in sales, 
a higher and growing inventory, and a downward trend in pro- 
duction, profits, wages, or employment (or increasing underem- 
ployment) in the domestic industry^ concerned : and 

(C) with respect to substantial cause, an increase in imports 
(either actual or relative to domestic production) and a decline in 
the proportion of the domestic market supplied by domestic 
producers. 

(3) For purposes of paragraph (1), in determining the domestic 
industry producing an article like or directly competitive with an 
imported article, the Commission — 



36 

(A) may, in the case of a domestic producer which also imports, 
treat as part of such domestic industry only its domestic 
production, 

(B) may, in the case of a domestic producer which produces 
more than one article, treat as part of such domestic industry only 
that portion or subdivision of the producer which produces the 
like or directly competitive article, and 

(C) may, in the case of one or more domestic producers, who 
produce a like or directly competitive article in a major geo- 
graphic area of the United States and whose production facilities 
in such area for such article constitute a substantial portion of the 
domestic industry in the United States and primarily serve the 
market in such area, and where the imports are concentrated in 
such area, treat as such domestic industry only that segment of 
the production located in such area. 

(4) For purposes of this section, the term "substantial cause" means 
a cause which is important and not less than any other cause. 

(5) In the course of any proceeding under this subsection, the Com- 
mission shall, for the purpose of assisting the President in making his 
determinations under sections 202 and 203, investigate and report 
on efforts made by firms and workers in the industry to compete more 
effectively with imports. 

(6) In the course of any proceeding under this subsection, the Com- 
mission shall investigate any factors which in its judgment may be 
contributing to increased imports of the article under investigation ; 
and, whenever in the course of its investigation the Commission has 
reason to believe that the increased imports are attributable in part 
to circumstances which come within the purview of the Antidumping 
Act, 1921," section 303 or 337 of the Tariff Act of 1930," or other 
remedial provisions of law, the Commission shall promptly notify the 
appropriate agency so that such action may be taken as is otherwise 
authorized by such provisions of law. 

(c) In the course of any proceeding under subsection (b), the Com- 
mission shall, after reasonable notice, hold public hearings and shall 
afford interested parties an opportunity to be present, to present evi- 
dence, and to be heard at such hearings. 

(d) (1) The Commission shall report to the President its findings 
under subsection (b), and the basis therefor and shall include in each 
report any dissenting or separate views. If the Commission finds with 
respect to any article, as a result of its investigation, the serious injury 
01- threat thereof described in subsection (b) , it shall — 

(A) find the amount of the increase in, or imposition of, any 
duty or import restriction on such article which is necessary to 
prevent or remedy such injury, or 

(B) if it determines that adjustment assistance under chapters 
2, 3, and 4 can effectively remedy such injury, recommend the pro- 
vision of such assistance. 

and shall include such findings or recommendation in its report to the 
President. The Commission shall furnish to the President a transcript 
of the hearings and any briefs which were submitted in connection 
with each investigation. 

16 19 U.S.C. 160-171. See p. 108 for text. 
"19 U.S.C. 1303, 1337. 



37 

(2) The report of tlie Commission of its determination under sub- 
section (b) shall be made at the earliest practicable time, but not later 
than G months after the date on which the petition is filed (or the date 
on wliicli the request or resolution is received or the motion is adopted, 
as the case may be). Upon makin<x such report to the President, the 
Commission shall also promptly make public such report (witli the 
exception of information whicli the Commission determines to be con- 
fidential) and shall cause a summary thereof to be published in the 
Federal Ke^rister. 

(e) Except for irood cause determined by the Commission to exist, 
no invest iiration for the purposes of this section shall be made with 
respect to the same subject matter as a previous investigation under 
this section, unless 1 year has elapsed since the Commission made its 
report to the President of the results of such previous investigation. 

(f) (1) Any investigation by the Commission under section 301(b) 
of the Trade Expansion Act of 1962 ^" (as in effect before the date of 
the enactment of this Act) which is in progress immediately before 
such date of enactment shall be continued under this section in the 
same manner as if the investigation had been instituted originally 
under the provisions of this section. For purposes of subsection (d) 
(2), the petition for any investigation to which the preceding sentence 
applies shall be treated as having been filed, or the request or resolu- 
tion as having been received or the motion having been adopted, as the 
case may be, on the date of the enactment of this Act. 

(2) If, on the date of the enactment of this Act, the President has 
not taken any action with respect to any report of the Commission 
containing an afhrmative determination resulting from an investiga- 
tion under section 301 (b) of the Trade Expansion Act of 1962 ^^ (as in 
effect before the date of the enactment of this Act), such report shall 
be treated by the President as a report received by him under this 
section on the date of the enactment of this Act. 

Sec. 202. Presidential Action After Investigations. 

(a) After receiving a report from the Commission containing an 
affirmative finding under section 201(b) that increased imports have 
been a substantial cause of serious injury or the threat thereof with 
respect to an industry, the President — 

(1) (A) shall provide import relief for such industry pursuant 
to section 203, unless he determines that provision of such relief 
is not in the national economic interest of the United States, and 

(B) shall evaluate the extent to which adjustment assistance 
has been made available (or can be made available) under 
chapters 2, 3, and 4 of this title to the workers and firms in such 
industry and to the communities in which such workers and firms 
are located, and, after such evaluation, may direct the Secretary 
of Labor and the Secretary of Commerce that expeditious con- 
sideration be iriven to the petitions for adjustment assistance ; or 

(2) if the Commission, imder section 201(d), recommends the 
provision of adjustment assistance, shall direct the Secretaries of 
Labor and Commerce as described in parasrraph (1) (B). 

(b) Within 60 days (30 days in the case of a supplemental report 
under subsection (dj) after receiving a report from the Commission 

" 19 U.S.C. 1901 : repealed by section 602(d) of this Act. 



38 

containing an affirmative finding under section 201(b) (or a finding 
under section 201(b) which he considers to be an affirmative finding, 
by reason of section 330(d) of the Tariff Act of 1930/* within such 
60-day (or 30-day) period) , the President shall — 

(1) determine what method and amount of import relief he 
will provide, or determine that the provision of such relief is not 
in the national economic interest of the United States, and whether 
he will direct expeditious consideration of adjustment assistance 
petitions, and publish in the Federal Register that he has made 
such determination ; or 

(2) if such report recommends the provision of adjustment 
assistance, publish in the Federal Register his order to the Secre- 
tary of Labor and Secretary of Commerce for expeditious con- 
sideration of petitions. 

(c) In determining whether to provide import relief and what 
method and amount of import relief he will provide pursuant to sec- 
tion 203, the President shall take into account, in addition to such 
other considerations as he may deem relevant — 

(1) information and advice from the Secretary of Labor on 
the extent to which workers in the industry have applied for, are 
receiving, or are likely to receive adjustment assistance under 
chapter 2 or benefits from other manpower programs ; 

(2) information and advice from the Secretary of Conunerce 
on the extent to which firms in the industry have applied for, are 
receiving, or are likely to receive adjustment assistance under 
chapters 3 and 4 ; 

(3) the probable effectiveness of import relief as a means to 
promote adjustment, the efforts being made or to be implemented 
by the industry concerned to adjust to import competition, and 
other considerations relative to the position of the industry in the 
Nation's economy ; 

(4) the effect of import relief on consumers (including the 
price and availability of the imported article and the like or 
directly competitive article produced in the United States) and 
on competition in the domestic markets for such articles ; 

(5) the effect of import relief on the international economic 
interests of the United States ; 

(6) the impact on United States industries and firms as a 
consequence of any possible modification of duties or other import 
restrictions which may result from international obligations with 
respect to compensation ; 

(7) the geographic concentration of imported products mar 
keted in the United States ; 

(8) the extent to which the United States market is the focal 
point for exports of such article by reason of restraints on exports 
of such article to, or on imports of such article into, third country 
markets; and 

(9) the economic and social costs which would be incurred bv 
taxpayers, communities, and workers, if import relief were or 
were not provided. 

(d) The President may, within 15 days after the date on which 
he receives an affirmative finding of the Commission under section 



39 

201(b) with respect to an industry, request additional information 
from the Commission. The Commission shall, as soon as practicable 
but in no event more than 80 days after the date on which it receives 
the President's request, furnish additional information with respect 
to such industry in a supplemental report. 

Sec. 203. Import Relief. 

(a) If the President determines to provide import relief under sec- 
tion 202(a) (1), he shall, to the extent that and for such time (not to 
exceed 5 years) as he determines necessary taking into account the 
considerations specihed in section 202(c) to prevent or remedy serious 
injury or the threat thereof to the industry in question and to facilitate 
the orderly adjustment to new competitive conditions by the industry 
in question — 

(1) proclaim an increase in, or imposition of, any duty on the 
article causing or threatening to cause serious injury to such 
industry ; 

(2) proclaim a tarilf-rate quota on such article ; 

(3) proclaim a modification of, or imposition of, any quantita- 
tive restriction on the import into the United States of such 
article ; 

(4) negotiate orderly marketing agreements with foreign coun- 
tries limiting the export from foreign countries and the import 
into the United States of such articles ; or 

(5) take any combination of such actions. 

(b) (1) On the day on which the President proclaims import relief 
under this section or announces his intention to negotiate one or more 
orderly marketing agreements, the President shall transmit to Con- 
gress a document setting forth the action he is taking under this sec- 
tion. If the action taken by the President differs from the action 
recommended to him by the Commission under section 201(b) (1) (A), 
he shall state the reason for such difference. 

(2) On the day on which the President determines that the provi- 
sion of import relief is not in the national economic interest of the 
United States, the President shall transmit to Congress a document 
setting forth such determination and the reasons why, in terms of the 
national economic interest, he is not providing import relief and also 
what other steps he is taking, beyond adjustment assistance programs 
immediately available to help the industry to overcome serious injury 
and the workers to find productive employment. 

(c)(1) If the President reports under subsection (b) that he is 
taking action which differs from the action recommended b}^ the Com- 
mission under section 201 ( b) ( 1 ) ( A) , or that he will not provide import 
relief, the action recommended by the Commission shall take effect 
(as provided in paragraph (2) ) upon the adoption by both Houses of 
Congress (within the 90-day period following the date on which the 
document referred to in subsection (b) is transmitted to the Congress), 
by an affirmative vote of a majority of the Members of each House 
present and voting, of a concurrent resolution disapproving the action 
taken by the President or his determination not to provide import 
relief under section 202(a) (1) (A). 

(2) If the contingency set forth in paragraph (1) occurs, the Presi- 
dent shall (within 30 days after the adoption of such resolution) 



40 

proclaim the increase in, or imposition of, any duty or other import 
restriction on the article which was recommended by the Commission 
under section 201 (b) . 

(d) (1) No proclamation pursuant to subsection (a) or (c) shall 
be made increasing a rate of duty to (or imposing^ a rate wnich is 
more than 50 percent ad valorem above the rate (ii any) existing at 
the time of the proclamation. 

(2) Any quantitative restriction proclaimed pursuant to subsection 
(a) or (c) and any orderly marketing agreement negotiated pursuant 
to subsection (a) shall permit the importation of a quantity or value 
of the article which is not less than the quantity or value of such article 
imported into the United States during the most recent period which 
the President determines is representative of imports of such article. 

(e) (1) Import relief under this section shall be proclaimed and take 
effect within 15 days after the import relief determination date unless 
the President announces on such date his intention to negotiate one or 
more orderly marketing agreements under subsection (a) (4) or (5) 
in which case import relief shall be proclaimed and take effect within 
90 days after the import relief determination date. 

(2) If the President provides import relief under subsection (a) 
(1), (2), (3), or (5), he may, after such relief takes effect, negotiate 
orderly marketing agreements with foreign countries, and may, after 
such agreements take effect, suspend or terminate, in whole or in part, 
such import relief. 

(3) If the President negotiates an orderly marketing agreement 
under subsection (a) (4) or (5) and such agreement does not con- 
tinue to be effective, he may, consistent with the limitations contained 
in subsection (h), provide import relief under subsection (a) (1), (2), 
(3),or'(6). 

(4) For purposes of this subsection, the term "import relief deter- 
mination date" means the date of the President's determination under 
section 202(b). 

(f)(1) For purposes of subsections (a) and (c), the suspension 
of item 806.30 or 807.00 of the Tariff Schedules of the United States 
with respect to an article shall be treated as an increase in duty. 

(2) For purposes of subsections (a J and (c), the suspension of the 
designation of any article as an eligible article for purposes of title 
V shall be treated as an increase in duty. 

(3) No proclamation providing for a suspension referred to in 
paragraph (1) with respect to any article shall be made under sub- 
section (a) or (c) unless the Commission, in addition to making an 
affirmative determination with respect to such article under section 
201 (bj, determines in the course of its investigation under section 
201 (b) that the serious injury (or threat thereof) substantially caused 
by imports to the domestic industry producing a like or directly com- 
petitive article results from the application of item 806.30 or item 
807.00. 

(4) No proclamation which provides solely for a suspension 
referred to in paragraph (2) with respect to any article shall be made 
under subsection (a) or (c) unless the Commission, in addition to 
making an affirmative determination with respect to such article 
under section 201(b), determines in the course of its investigation 



41 

under section 201(b) that the serious injury (or threat thereof) sub- 
stantially caused by imports to the domestic industry producing a 
like or directly competitive article results from the designation of the 
article as an eligible article for the purposes of title V. 

(g) (1) The President shall by regulations provide for the efficient 
and fair administration of any quantitative restriction proclaimed 
pursuant to subsection (a)(3) or (c). 

(2) In order to carry out an agreement concluded under subsection 
(a)(4), (a)(5), or (e)(2), the President is authorized to prescribe 
regulations governing the entry or withdrawal from warehouse of 
articles covered by such agreement. In addition, in order to carry out 
any agreement concluded under subsection (a) (4), (a) (5), or (e) (2) 
with one or more countries accounting for a major part of United 
States imports of the article covered by such agreements, including im- 
ports into a major geographic area of the United States, the President 
is authorized to issue regulations governing the entry or withdrawal 
from warehouse of like articles which are the product of coimtries not 
parties to such agreement. 

(3) Regulations prescribed under this subsection shall, to the extent 
practicable and consistent with efficient and fair administration, insure 
against inequitable sharing of imports by a relatively small number of 
the larger importers. 

(h) (1) Any import relief provided pursuant to this section shall, 
unless renewed pursuant to paragraph (3), terminate no later than 
the close of the day which is 5 years after the day on which import 
relief with respect to the article in question first took effect pursuant 
to this section. 

(2) To the extent feasible, any import relief provided pursuant 
to this section for a period of more than 3 years shall be phased down 
during the period of such relief, with the first reduction of relief tak- 
ing effect no later than the close of the day which is 3 years after the 
day on which such relief first took effect. 

(3) Any import relief provided pursuant to this section or section 
351 or 352 of tne Trade Expansion Act of 1962 ^' may be extended by 
the President, at a level of relief no greater than the level in effect 
immediately before such extension, for one 3 year period if the Presi- 
dent determines, after taking into account the advice received from 
the Commission under subsection (i) (2) and after taking into account 
the considerations described in section 202(c), that sucn extension is 
in the national interest. 

(4) Any import relief provided pursuant to this section may be 
reduced or terminated by the President when he determines, after 
taking into account the advice received from the Commission under 
subsection (i) (2) and after seeking advice of the Secretary of Com- 
merce and the Secretary of Labor, that such reduction or termination 
is in the national interest. 

(5) For purposes of this subsection and subsection (i), the import 
relief provided in the case of an orderly marketing agreement shall be 
the level of relief contemplated by such agreement. 

(i) (1) So long as any import relief provided pursuant to this 
section or section 351 or 352 of the Trade Expansion Act of 1962 " 

« 19 U.S.C. 1981, 1982. See pp. 105-107 for text 



42 

remains in effect, the Commission shall keep under review develop- 
ments with respect to the industry concerned (including the progress 
and specific efforts made by the firms in the industry concerned to 
adjust to import competition) and upon request of the President shall 
make reports to the President concerning such developments. 

(2) Upon request of the President or upon its own motion, the 
Commission shall advise the President of its judgment as to the prob- 
able economic effect on the industry concerned of the extension, reduc- 
tion, or termination of the import relief provided pursuant to this 
section. 

(3) Upon petition on behalf of the industry concerned, filed with 
the Commission not earlier than the date which is 9 months, and not 
later than the date which is 6 months, before the date any import relief 
provided pursuant to this section or section 351 or 352 of the Trade 
Expansion Act of 1962 is to terminate by reason of the expiration of 
the initial period therefor, the Commission shall advise the President 
of its judgment as to the probable economic effect on such industry of 
such termination. 

(4) In advising the President under paragraph (2) or (3) as 
to the probable economic effect on the industry concerned, the Com- 
mission shall take into account all economic factors which ^ it 
considers relevant, including the considerations set forth in section 
202(c) and the progress and specific efforts made by the industry con- 
cerned to adjust to import competition. 

(5) Advice by the Commission under paragraph (2) or (8) shall 
be given on the basis of an investigation during the course of which 
the Commission shall hold a hearing at which interested persons shall 
be given a reasonable opportimity to be present, to produce evidence, 
and to be heard. 

(j) No investigation for the purposes of section 201 shall be made 
with respect to an article which has received import relief under this 
section unless 2 years have elapsed since the last day on which import 
relief was provided with respect to such article pursuant to this section. 

(k) (1) Actions by the President pursuant to this section may be 
taken without regard to the provisions of section 126(a) of this Act 
but only after consideration of the relation of such actions to the 
international obligations of the United States. 

(2) If the Commission treats as the domestic industry production 
located in a major geographic area of the ITnited States under section 
201(b)(3) (C), then the President shall take into account the geo- 
graphic concentration of domestic production and of imports in that 
area in providing import relief, if any. which may include actions 
authorized under paragraph (1) . 

Chapter 2 — Adjustment Assistance for Workers 

subchapter a petitions axd determinations 

Sec. 221. Petitions. 

(a) A petition for a certification of eligibility to apply for adjust- 
ment assistance under this chapter may be filed with the Secretary 
of Labor (hereinafter in this chapter referred to as the "Secretary ) 
by a group of workers or by their certified or recognized union or 



43 

other duly authorized representative. Upon receipt of the petition, the 
Secretary shall promptly publish notice in the Federal Register that 
he has received the petition and initiated an investigation. 

(b) If the petitioner, or any other person found by the Secretary 
to have a substantial interest in the proceedings, submits not later than 
10 days after the date of the Secretary's publication under subsection 
(a) a request for a hearin^^, the Secretary shall provide for a public 
hearing and aflPord such interested persons an opportunity to be 
present, to produce evidence, and to be heard. 

Sec. 222. Group Eligibility Requirements. 

The Secretary shall certify a group of workers as eligible to apply 
for adjustment assistance under this chapter if he detormine? — 

(1) that a significant number or proportion of the workers 
in such workers' firm or an appropriate subdivision of the firm 
have become totally or partially separated, or are threatened to 
become totally or partially separated, 

(2) that sales or production, or both, of such firm or subdivi- 
sion have decreased absolutely, and 

(3) that increases of imports of articles like or directly com- 
petitive with articles produced by such workers' firm or an 
appropriate subdivision thereof contributed importantly to such 
total or partial separation, or threat thereof, and to such decline 
in sales or production. 

For purposes of paragraph (3), the term "contributed importantly" 
means a cause which is important but not necessarily more important 
than any other cause. 

Sec. 223. Determinations by Secretary of Labor. 

(a) As soon as possible after the date on which a petition is filed 
under section 221, but in any event not later than 60 days after that 
date, the Secretary shall determine whether the petitioning group 
meets the requirements of section 222 and shall issue a certification 
of eligibility to apply for assistance under this chapter covering work- 
ers in any group which meets such requirements. Each certification 
shall specify the date on which the total or partial separation began 
or threatened to begin. 

(b) A certification under this section shall not apply to any worker 
whose last total or partial separation from the firm or appropriate 
subdivision of the firm before his application under section 231 " 
occurred — 

(1) more than one year before the date of the petition on 
which such certification was granted, or 

(2) more than 6 months before the effective date of this 
chapter. 

(c) Upon reaching his determination on a petition, the Secretary 
shall promptly publish a summary of the determination in the Fed- 
eral Register together with his reasons for making such determination. 

(d) Whenever the Secretary determines, with respect to any certi- 
fication of eligibility of the workers of a firm or subdi\nsion of the 
firm, that total or partial separations from such firm or subdivision 
are no longer attributable to the conditions specified in section 222, he 

" 19 U.S.C. 2291. 



44 

shall terminate such certification and promptly have notice of such 
termination published in the Federal Kegister together with his rea- 
sons for making such determination. Such termination shall apply 
only with respect to total or partial separations occurring after the 
termination date specified by the Secretary. 

Sec. 224. Study by Secretary of Labor When International Trade 
Commission Begins Investigation; Action Where There is 
Affirmative Finding. 

(a) Whenever the International Trade Commission (hereafter re- 
ferred to in this chapter as the "Commission") begins an investiga- 
tion under section 201 with respect to an industry, the Commission 
shall immediately notify the Secretary of such investigation, and the 
Secretary shall immediately begin a study of — 

(1) the number of workers in the domestic industry producing 
the like or directljr competitive article who have been or are likely 
to be certified as eligible for adjustment assistance, and 

(2) the extent to which the adjustment of such workers to the 
import competition may be facilitated through the use of exist- 
ing programs. 

(b) The report of the Secretary of the study under subsection (a) 
shall be made to the President not later than 15 days after the day on 
which the Commission makes its report under section 201. Upon mak- 
ing his report to the President, the Secretary shall also promptly make 
it public (with the exception of information which the Secretary deter- 
mines to be confidential) and shall have a summary of it published 
in the Federal Register. 

(c) Whenever the Commission makes an affirmative finding under 
section 201(b) that increased imports are a substantial cause of seri- 
ous injury or threat thereof with respect to an industry, the Secretary 
shall make available, to the extent feasible, full information to the 
workers in such industry about programs which may facilitate the 
adjustment to import competition of such workers, and he shall pro- 
vide assistance in the preparation and processing of petitions and 
applications of such workers for program benefits. 

SUBCHAPTER B — ^PROGRAM BENEFITS 

[Sections 231-238 ; 19 U.S.C. 2291-2298.] 



SUBCHAPTER C GENERAL PRO^^SIONS 

[Sections 239-250 ; 19 U.S.C. 2311-2322.] 



Sec. 246. Transitional Provisions. 

(a) Where a group of workers has been certified as eligible to apply 
for adjustment assistance under section 302(b) (2) or (c) of the Trade 
Expansion Act of 1962,^° any worker who has not had an application 
for trade readjustment allowances under section 322 of that Act *° 
denied before the effective date of this chapter may apply under sec- 

«> Repealed as of April 3, 1975 by section 602(e) of this Act. 



45 

tion 231 of this Act as if the ^oup certification under which he claims 
coveracre had been made under subchapter A of this chapter. 

(b) In anv case where a group of workers or their certified or recog- 
nized union or other duly authorized representative has ^l^^d a petition 
under section 301(a) (2) of the Trade Expansion Act of 1962," more 
than 4 months before the effective date of this chapter and 

(1) the Commission has not rejected such petition before the 
effective date of this chapter, and . 

(2) the President or his delegate has not issued a certihcation 
under section 302(c) of that Act " to the petitioning group before 
the effective date of this chapter, . . 

such group or representative thereof may file a new petition under sec- 
tion 221 of this Act, not later than 90 days after the effective date of 
this chapter. For purposes of section 223(b)(1), the date on which 
such group or representative filed the petition under the Trade Ex- 
pansion Act of 1962 shall apply. Section 223(b) (2) shall not apply to 
workers covered by a certihcation issued pursuant to a petition meet- 
ing the requirements of this subsection. 

(c) A group of workers may file a petition under section 221 cover- 
ing weeks of unemployment (as defined in the Trade Expansion Act of 
1962) beginning before the effective date of this chapter, or covering 
such weeks and also weeks of unemployment beginning on or after 
the effective date of this chapter. 

(d) Any worker receiving payments pursuant to this section shall 
be entitled — 

(1) for weeks of unemployment (as defined in the Trade Ex- 
pansion Act of 1962) beginning before the effective date of this 
chapter, to the rights and privileges provided in chapter 3 of title 
III of such Act, and 

(2) for weeks of unemployment beginning on or after the effec- 
tive date of this chapter, to the rights and privileges provided 
in this chapter, except that the total number of weeks of unem- 
ployment for which an adversely affected worker is eligible for 
which trade readjustment allowances were payable under that 
Act shall be deducted from the total number of weeks of unem- 
ployment for which an adversely affected worker is eligible for 
trade readjustment allowances under this chapter. 

(e) The Commission shall make available to the Secretary on re- 
quest data it has acquired in investigations under section 301 of the 
Trade Expansion Act of 1962 " " concluded within the 2-year period 
ending on the effective date of this chapter which did not result in 
Presidential action under section 302(a) (3) " or 302(c) " of that Act. 



Chapter 3 — Adjustment Assistance for Firms 

Sec. 251. Petitions and Detenninations. 

(a) A petition for a certification of eligibility to apply for adjust- 
ment assistance under this chapter may be filed with the Secretary of 
Commerce (hereinafter in this chapter referred to as the "Secretary") 

«> Repealed by section 602(d) of this Act 



46 

by a firm or its representative. Upon receipt of the petition, the Secre- 
tary shall promptly publish notice in the Federal Register that he has 
received the petition and initiated an investigation. 

(b) If the petitioner, or any other person, organization, or group 
found by the Secretary to have a substantial interest in the proceed- 
ings, submits not later than 10 days after the date of the Secretary's 
publication under subsection (a) a request for a hearing, the Secretary 
shall provide for a public hearing and afford such interested persons 
an opportunity to be present, to produce evidence, and to be heard. 

(c) The Secretary shall certify a firm as eligible to apply for adjust- 
ment assistance under this chapter if he determines — 

(1) that a significant number or proportion of the workers in 
such firm have become totally or partially separated, or are threat- 
ened to become totally or partially separated, 

(2) that sales or production, or both, of such firm have de- 
creased absolutely, and 

(3) that increases of imports of articles like or directly com- 
petitive with articles produced by such firm contributed impor- 
tantly to such total or partial separation, or threat thereof, and 
to such decline in sales or production. 

For purposes of paragraph (3), the term "contributed importantly" 
means a cause which is important but not necessarily more important 
than any other cause. 

(d) A determination shall be made by the Secretary as soon as 
possible after the date on which the petition is filed under this section, 
but in any event not later than 60 days after that date. 

Ht * H: * * * * 

Sec. 263. Transitional Provisions. 

(a) In any case where a firm or its representative has filed a petition 
with the International Trade Commission (hereafter in this chapter 
referred to as the "Commission") under section 301(a) (2)^° of the 
Trade Expansion Act of 1962, and the Commission has not made its 
determination under section 301(c)-" of that Act before the effective 
date of this chapter, such firm may reapply under the provisions of 
section 251 of this Act. In order to assist the Secretary in making his 
determination under such section 251 with respect to such firm, the 
Commission shall make available to the Secretary, on request, data 
it has acquired with respect to its investigation. 

(b) If, on the effective date of this chapter, the President (or his 
delegate) has not taken action under section 302(c) of the Trade Ex- 
pansion Act of 1962 '^ with respect to a report of the Commission con- 
taining an affirmative finding under section 301(c) of that Act" or a 
report with respect to which an equal number of Commissioners are 
evenly divided, the Secretary may treat such report as a certification 
of eligibility made under section 251 of this Act on the effective date 
of this chapter. 

(c) Any certification of eligibility of a firm under section 302(c) 
of the Trade Expansion Act of 1962 ^ made before the effective date 
of this chapter shall be treated as a certification of eligibility made 
under section 251 of this Act on the date of the enactment of this Act; 
except that any firm whose adjustment proposal was certified under 



47 

section 311 of the Trade Expansion Act of 1962" before the effective 
date of this chapter may receive adjustment assistance at the level 
set forth in such certified proposal. 

Sec. 264. Study by Secretary of Commerce When International 
Trade Commission Begins Investigation ; Action Where There 
Is Affirmative Finding. 

(a)\\Tienever the Commission begins an investigation under section 
201 with respect to an industry, the Commission shall immediately 
notify the Secretary of such investigation, and the Secretary shall 
immediately begin a study of — 

(1) the number of firms in the domestic industry producing 
the like or directly competitive article which have been or are 
likely to be certified as eligible for adjustment assistance, and 

(2) the extent to which the orderly adjustment of such firms to 
the import competition may be facilitated through the use of 
existing programs. 

(b) The report of the Secretary of the study under subsection (a) 
shall be made to the President not later than 16 days after the day on 
which the Commission makes its report under section 201. Upon mak- 
ing its report to the President, the Secretary shall also promptly make 
it public (with the exception of information which the Secretary de- 
termines to be confidential) and shall have a summary of it published 
in the Federal Register. 

(c) Whenever the Commission makes an afHrmative finding under 
section 201 (b) that increased imports are a substantial cause of serious 
injury or threat thereof with respect to an industry, the Secretary 
shall make available, to the extent feasible, full information to the 
firms in such industry about programs which may facilitate the or- 
derly adjustment to import competition of such firms, and he shall 
provide assistance in the preparation and processing of petitions and 
applications of such firms for program benefits. 



Chapter 5 — Miscellaneous Provisions 

Sec. 280. General Accounting Office Report. 

(a) T\m Comptroller General of the United States shall conduct a 
study of the adjustment assistance programs established under chap- 
ters 2, 8, and 4 of this title and shall report the results of such study 
to the Congress no later than January 31, 1980. Such report shall in- 
clude an evaluation of — 

(1) the effectiveness of such programs in aiding workers, firms, 
and communities to adjust to changed economic conditions result- 
ing from changes in the patterns of international trade ; and 

(2) the coordination of the administration of such programs 
and other Government programs which provide unemployment 
compensation and relief to depressed areas. 

(b) In carrying out his responsibilities under this section, the 
Comptroller General shall, to the extent practical, avail himself of the 
assistance of the Departments of Labor and Commerce. The Secre- 
taries of Labor and Commerce shall make available to the Comp- 
troller General any assistance necessary for an effective evaluation of 
the adjustment assistance programs established under this title. 



48 

Sec. 281. Coordination. 

There is established the Adjustment Assistance Coordinatinor Com- 
mittee to consist of a Deputy Special Trade Representative as 
Chairman, and the officials charged with adjustment assistance respon- 
sibilities of the Departments of Labor and Commerce and the Small 
Business Administration. It shall be the function of the Committee to 
coordinate the adjustment assistance policies, studies, and programs of 
the various agencies involved and to promote the efficient and effective 
delivery of adjustment assistance benefits. 

Sec. 282. Trade Monitoring System. 

The Secretary of Commerce and the Secretary of Labor shall estab- 
lish and maintain a program to monitor imports of articles into the 
United States which will reflect changes in the volume of such imports, 
the relation of such imports to changes in domestic production, changes 
in employment within domestic industries producing articles like or 
directly competitive with such imports, and the extent to which such 
changes in production and employment are concentrated in specific 
geographic regions of the United States. A summary of the informa- 
tion gathered under this section shall be published regularly and pro- 
vided to the Adjustment Assistance Coordinating Committee, the 
International Trade Commission, and to the Congress. 

Sec. 283. Firms Relocating in Foreign Countries. 

Before moving productive facilities from the United States to a 
foreign country, every firm should — 

(1) provide notice of the move to its employees who are likely 
to be totally or partially separated as a result of the move at least 
60 days before the date of such move, and 

(2) provide notice of the move to the Secretary of Labor and 
the Secretary of Commerce on the same day it notifies employees 
under paragraph (1). 

(b) It is the sense of the Congress that every such firm should — 

(1) apply for and use all adjustment assistance for which it 
is eligible under this title, 

(2) offer employment opportunities in the United States, if any 
exist, to its employees who are totally or partially separated work- 
ers as a result of the move, and 

(3) assist in relocating employees to other locations in the 
United States where employment opportunities exist. 

Sec. 284. Effective Date. 

Chapters 2, 3, and 4 of this title shall become effective on the 90th 
day following the date of enactment of this Act and shall terminate 
on September 30, 1982. 

TITLE III— RELIEF FROM UNFAIR TRADE PRACTICES 

Chapter 1 — Foreigx Import Restrictioxs axd Export Subsidies 

Sec. 301. Responses to Certain Trade Practices of Foreign 
Governments. 

(a) Whenever the President determines that a foreign country or 
instrumentality — 



49 

(1) maintains unjustifiable or unreasonable tariff or other 
import restrictions whicli impair the value of trade conmiitments 
made to the United iStates or which burden, restrict, or discrimi- 
nate against United States commerce, 

(2) engages in discriminatory or other acts or policies which 
are unjustifiable or unreasonable and which burden or restrict 
United States Commerce, 

(3) provides subsidies (or other incentives having the effect 
of subsidies) on its exports of one or more products to the United 
States or to other foreign markets which have the effect of sub- 
stantially reducing sales of the competitive United States product 
or products in the United States or in those other foreign markets, 
or 

(4) imposes unjustifiable or unreasonable restrictions on access 
to supplies of food, raw materials, or manufactured or semimanu- 
factured products which burden or restrict United States com- 
merce, 

the President shall take all appropriate and feasible steps within his 
power to obtain the elimination of such restrictions or subsidies, and 
he— 

(A) may suspend, w^ithdraw, or prevent the application of, or 
may refram from proclaiming, benefits of trade agreement con- 
cessions to carry out a trade agreement with such country or 
instrumentality ; and 

(B) may impose duties or other import restrictions on the 
products of such foreign country or instrumentality, and may 
mipose fees or restrictions on the services of such foreign country 
or instrumentality, for such time as he deems appropriate. 

For purposes of this subsection, the term "commerce" includes services 
associated with the international trade. 

(b) In determining what action to take under subsection (a), the 
President shall consider the relationship of such action to the purposes 
of this Act. Action shall be taken under subsection (a) against the 
foreign country or instrumentality involved, except that, subject to 
the provisions of section 302, any such action may be taken on a non- 
discriminatory treatment basis. 

(c) The President in making a determination under this section, 
may take action under subsection (a) (3) with respect to the exports 
of a product to the United States by a foreign country or instru- 
mentality if — 

(1) the Secretary of the Treasury has found that such country 
or instrumentality provides subsidies (or other incentives havin*£r 
the effect of subsidies) on such exports ; 

(2) the International Trade Commission has found that such 
exports to the United States have the effect of substantially redno- 
ing sales of the competitive United States product or products 
in the United States : and 

(3) the President finds that the Antidumpinor Act. 1021." and 
section 303 of the Tariff Act of 1930 " are inadequate to deter such 
practices. 

(d)(1) The President shall provide an opportunity for the 
presentation of views concerning the restrictions, acts, policies, or 



50 

practices referred to in paragraphs (1), (2), (3), and (4) of sub- 
section (a). 

(2) Upon complaint filed by any interested party with the Special 
Representative for Trade Negotiations alleging any such restriction, 
act, policy, or practice, the Special Eepresentative shall conduct a 
review of the alleged restriction, act, policy, or practice, and, at the 
request of the complainant, shall conduct public hearings thereon. The 
Special Representative shall have a copy of each complaint filed under 
this paragraph published in the Federal Register. The Special Rep- 
resentative shall issue regulations concerning the filing of complaints 
and the conduct of reviews and hearings under this paragraph and 
shall submit a report to the House of Representatives and the Senate 
semi-annually summarizing the reviews and hearings conducted by it 
under this paragraph during the preceding 6-month period. 

(e) Before the President takes any action under subsection (a) 
with respect to the import treatment of any product or the treat- 
ment of any service — 

(1) he shall provide an opportunity for the presentation of 
views concerning the taking of action with respect to such product 
or service, 

(2) upon request by any interested person, he shall provide 
for appropriate public hearings with respect to the taking of 
action with respect to such product or service, and 

(3) he may request the International Trade Commission for 
its views as to the probable impact on the economy of the United 
States of the taking of action with respect to such product or 
service. 

If the President determines that, because of the need for expeditious 
action under subsection (a), compliance with paragraphs (1) and (2) 
would be contrary to the national interest, then such paragraphs shall 
not apply with respect to such action, but he shall thereafter promptly 
provide an opportunity for the presentation of views concerning the 
action taken and, upon request by any interested person, shall provide 
for appropriate public hearings with respect to the action taken. 
The President shall provide for the issuance of regulations concerning 
the filing of requests for, and the conduct of, hearings imder this 
subsection. 

Sec. 302. Procedure for Congressional Disapproval of Certain 
Actions Taken Under Section 301. 

(a) Whenever the President takes any action under subparagraph 
(A) or (B) of section 301(a) with respect to any country or instru- 
mentality other than the country or instrumentality whose restriction, 
act, policy, or practice was the cause for taking such action, he shall 
promptly transmit to the House of Representatives and to the Senate 
a document setting forth the action which he has so taken, together 
with his reasons therefor. 

(b) If, before the close of the 90-day period beginning on the day 
on which the document referred to in subsection (a) is delivered to 
the House of Representatives and to the Senate, the two Houses adopt, 
by an affirmative vote of a majority of those present and voting in 
each House, a concurrent resolution of disapproval under the pro- 



51 

cedures set forth in section 152, then such action under section 301(a) 
shall have no force and effect beginning with the day after the date 
of the adoption of such concurrent resolution of disapproval, except 
with respect to the country or instrumentality whose restriction, act, 
policy, or practice was the cause for taking such action. 

Chapter 2 — Anttoumtino Duties 

Sec. 321. [Subsections (a), (b), (c), (d), (e), and (g) (1) and (2) 
amend the Antidumping Act of 1921, as amended/^] 
n ***** * 

(f) (1) Section 516 of the Tariff Act of 1930 (19 U.S.C. 1516) is 
amended by redesignating subsections (d), (e), (f), and (g) as sub- 
sections (e), (f), (g), and (h), respectively, and by inserting after 
subsection (c) the following new subsection : 
"(d) Within 30 days after a determination by the Secretary — 

"(1) under section 201 of the Antidumping Act, 1921 (19 

U.S.C. 160), that a class or kind of foreign merchandise is not 

being, nor likely to be, sold in the United States at less than its 

fair value, or 

(2) under section 303 of this Act that a bounty or grant is not 

bein^ paid or bestowed, 
an American manufacturer, producer, or wholesaler of merchandise 
of the same class or kind as that described in such determination may 
file with the Secretary a written notice of a desire to contest such deter- 
mination. Upon receipt of such notice the Secretary shall cause pub- 
lication to be made thereof and of such manufacturer's, producer's, or 
wholesaler's desire to contest the determination. Within 30 days after 
such publication, such manufacturer, producer, or wholesaler may com- 
mence an action in the United States Customs Court contesting such 
determination.". 

(2) Section 2631(b) of title 28, United States Code, is amended by 
inserting before the period at the end thereof ", or, in the case of an 
action under section 516(d) of such Act, after the date of publication 
of a notice under such section". 

(3) Section 2632 of title 28, United States Code, is amended— 

(A) by striking out the first sentence of subsection (a) and 
inserting in lieu thereof the following: "A party may contest (1) 
denial of a protest under section 515 of the Tariff Act of 1930, 
as amended ; (2) a decision of the Secretary of the Treasury made 
under section 516 of the Tariff Act of 1930, as amended; or (3) a 
determination by the Secretary of the Treasury under section 201 
of the Antidumping Act, 1921, as amended, that a class or kind 
of merchandise is not being, nor likely to be, sold in the United 
States at less than its fair value, or under section 303 of the Tariff 
Act of 1930 that a bounty or grant is not being paid or bestowed ; 
by bringing a civil action in the Customs Court."; 

(B) by inserting after "designee" in subsection (f) "in any 
action brought under subsection (a) (1) or (a) (2)"; and 

(C) by adding at the end thereof the following new subsection : 
"(g) Upon service of the summons on the Secretary of the Treasury 

'»r his designee in an action contesting the Secretary's determination 



52 

under section 201 of tlie Antidumping Act, 1921, as amended, that a 
class or kind of foreign merchandise is not being, nor likely to be, sold 
in the United States at less than its fair value, the Secretary or his 
designee shall forthwith transmit to the United States Customs Court, 
as the official record of the civil action, a certified copy of the tran- 
script of any hearing held by the Secretary in the particular anti- 
dumping proceeding pursuant to section 201 (d) (1) of the Antidump- 
ing Act, 1921, as amended, and certified copies of all notices, determi- 
nations, or other matters which the Secretary has caused to be pub- 
lished in the Federal Register in connection with the particular Anti- 
dumping proceeding. Upon service of the summons on the Secretary 
of the Treasury or his designee in an action contesting the Secretary's 
determination under section 303 of the Tariff Act of 1930 that a 
bounty or grant is not being paid or bestowed, the Secretary or his 
designee shall forthwith transmit to the United States Customs Court, 
as the official record of the civil action, a certified copy of the tran- 
script of all hearings held by the Secretary in tlie proceeding which 
resulted in such determination and certified copies of all notices, de- 
terminations, or otlier matters which the Secretary has caused to be 
published in the Federal Register in connection with such proceed- 
ing.". 

* * * 4t * * * 

(g) * * * 

(3) The amendments made by subsection (f ) shall apply with re- 
spect to determinations under section 201 of the Antidumping Act, 
1921, resulting from questions of dumping raised or presented on or 
after the date of the enactment of this Act. 

Chapter 3 — Countervailing Duties 

Sec. 331. Amendments to Sections 303 and 516 of the Tariff Act 
of 1930. 

(a) Section 303 of the Tariff Act of 1930 (19 U.S.C. sec. 1303) is 
amended to read as follows : 

"Sec. 303. Countervailing Duties. 

"(a) Levy of Countervailing Duties. — (1) Whenever any country, 
dependency, colony, province, or other political subdivision of govern- 
ment, person, partnership, association, cartel, or corporation, shall pay 
or bestow, directly or indirectly, any bounty or grant upon the manu- 
facture or production or export of any article or merchandise manu- 
factured or produced in such country, dependency, colony, province, or 
other political subdivision of government, then upon the importation 
of such article or merchandise into the United States, whether the same 
shall be imported directly from the country of production or other- 
wise, and whether such article or merchandise is imported in the same 
condition as when exported from the country of production or has boen 
changed in condition by remanufacture or otherwise, there shall be 
levied and paid, in all such cases, in addition to any duties otherwise 
imposed, a duty equal to the net amount of such bounty or grant, how- 
ever the same be paid or bestowed. 

"(2) In the case of any imported article or merchandise which is 
free of duty, duties may be imposed under this section only if there is 



53 

an affirmative determination by the Commission under subsection 
(b) (1) ; except that such a determination shall not be required unless 
a determination of injury is required by the international obligations 
of the United States. 

"(3) In the case of any imported article or merchandise as to which 
the Secretary of the Treasury (hereafter in this section referred to as 
the 'Secretary') has not determined whether or not any bounty or grant 
is being paid or bestowed — 

"(A) upon the filing of a petition by any person setting forth 
his belief that a bounty or grant is being paid or bestowed, and 
the reasons therefor, or 

"(B) whenever the Secretary concludes, from information pre- 
sented to him or to any person to whom authority under this sec- 
tion has been delegated, that a formal investigation is warranted 
into the question of whether a bounty or grant is being paid or 
bestowed, 
the Secretary shall initiate a formal investigation to determine 
whether or not any bounty or grant is being paid or bestowed and shall 
publish in the Federal Register notice of the initiation of such 
investigation. 

"(4) Within six months from the date on which a petition is filed 
under paragraph (3) (A) or on which notice is published of an inves- 
tigation initiated under paragraph (3) (B), the Secretary shall make 
a preliminary determination, and within twelve months from such date 
shall make a final determination, as to whether or not any bounty or 
grant is being paid or bestowed. 

" f 5) The Secretary shall from time to time ascertain and determine, 
or estimate, the net amount of each such bounty or grant, and shall 
declare the net amount so determined or estimated. 

"(6) The secretary shall make all regulations he deems necessary 
for the identification of articles and merchandise subject to duties 
under this section and for the assessment and collection of such duties. 
All determinations by the Secretary under this section, and all deter- 
minations by the Commission under subsection (b)(1) (whether 
affirmative or negative) shall be published in the Federal Register. 

"(b) Injury Determinations With Respect to Duty-Free 
Merchandise/ Suspension of Liquidation. — (1) Whenever the Sec- 
retary makes a final determination under subsection (a) that a bounty 
or grant is being paid or bestowed with respect to any article or mer- 
chandise which is free of duty and a determination by the Commission 
IS required under subsection (a) (2), he shall— 

"(A) so advise the Commission, and the Commission shall 
determine within three months thereafter, and after such investi- 
gation as it deems necessary, whether an industry in the United 
States IS boinor or is likely to be injured, or is prevented from 
being established, by reason of the importation of such article or 
merchandise into the United States; and the Commission shall 
notify the Secretary of its determination; and 

"(B) require, under such regulations as he may prescribe, the 
suspension of liquidation as to such article or merchandise entered, 
or withdrawn from warehouse, for consumption on or after the 
date of the publication in the Federal Register of his final deter- 



54 

mination under subsection (a) , and such suspension of liquidation 
shall continue until the further order of the Secretary or until 
he has made public an order as provided for in paragraph (3). 
"(2) For the purposes of this subsection, the Commission shall be 
deemed to have made an affirmative determination if the commis- 
sioners voting are evenly divided as to whether its determination 
should be in the affirmative or in the negative. 

"(3) If the determination of the Commission under paragraph 
(1) (A) is in the affirmative, the Secretary shall make public an order 
directing the assessment and collection of duties in the amount of such 
bounty or grant as is from time to time ascertained and determined, 
or estimated, under subsection (a). 

"(c) Application of Affirmative Determination.— An affirma- 
tive final determination by the Secretary under subsection (a) with 
respect to any imported article or merchandise shall apply with respect 
to articles entered, or withdrawn from warehouse, for consumption on 
or after the date of the publication in the Federal Register of such 
determination. In the case of any imported article or merchandise 
which is free of duty, so long as a finding of injury is required by the 
international obligations of the United States, the preceding sentence 
shall apply only if the Commission makes an affirmative determination 
of injury under subsection (b) (1) . 

"(d) Temporary Provision While Negotiations Are in Proc- 
ess. — (1) It is the sense of the Congress that the President, to the 
extent practicable and consistent with United States interests, seek 
through negotiations the establishment of internationally agreed rules 
and procedures governing the use of subsidies (and other export incen- 
tives) and the application of countervailing duties. 

"(2) If, after seeking information and advice from such agencies 
as he may deem appropriate, the Secretary of the Treasury determines. 
at any time during the four-year period beginning on the date of the 
enactment of the Trade Act of 1974, that — 

"(A) adequate steps have been taken to reduce substantially 
or eliminate during such period the adverse effect of a bounty 
or grant which he has determined is being paid or bestowed with 
respect to any article or merchandise ; 

"(B) there is a reasonable prospect that, under section 102 of 
the Trade Act of 1974, successful trade agreements will be entered 
into with foreigp countries or instrumentalities providing for the 
reduction or elimination of barriers to or other distortions of 
international trade; and 

"(C) the imposition of the additional duty under this section 
with respect to such article or merchandise would be likely to 
seriously jeopardize the satisfactory completion of such negotia- 
tions ; 
the imposition of the additional duty under this section with respect 
to such article or merchandise shall not be required during the remain- 
der of such four-year period. This paragraph shall not apply with 
respect to any case involving non-rubber footwear pending on the 
date of the enactment of the Trade Act of 1974 until and unless 
agreements which temporize imports of non-rubber footwear become 
effective. 



55 

"(3) The determination of the Secretary under paragraph (2) inaj 
bo revoked by him, in his discretion, at anv time, and any determi- 
nation made under such paragraph shall be revoked whenever the 
basis supporting such determination no longer exists. The additional 
duty provided under this section shall apply with respect to any 
affected articles or merchandise entered, or withdrawn from ware- 
house, for consumption on or after the date of publication of any 
revocation under this subsection in the Federal Kegister. 

"(e) Reports to Congress. — (1) Wlienever the Secretary makes 
a determination under subsection (d) (2) with respect to any article 
or merchandise, he shall promptly transmit to the House of Repre- 
sentatives and tiie Senate a document setting forth the determination, 
together with his reasons therefor. 

"'(2) If, at any time after the document referred to in paragraph 
( 1) is delivered to the House of Representatives and the Senate, either 
the House or the Senate adopts, by an affirmative vote of a majority of 
those present and voting in that House, a resolution of disapproval 
under the procedures set forth in section 152, then such determina- 
tion under subsection (d) (2) with respect to such article or merchan- 
dise shall have no force or effect beginning with the day after the 
date of the adoption of such resolution of disapproval, and the 
additional duty provided under this section with respect to such 
article or merchandise shall apply with respect to articles or 
merchandise entered, or withdrawn from warehouse, for consumption 
on or after such day.". 

(b) So much of section 516 of the Tariff Act of 1930 (19 U.S.C. 
1516) as precedes subsection (d) is amended to read as follows : 

"Sec. 516. Petitions by American Manufacturers, Producers, or 
Wholesalers. 

"(a) The Secretary shall, upon written request by an American 
mr^nufacturer, producer, or wholesaler, furnish the classification, the 
rate of duty, the additional duty described in section 303 of this Act 
(hereinafter in this section referred to as 'countervailing duties'), if 
any, and the special duty described in section 202 of the Antidumping 
Act, 1921 2^ (hereinafter in this section referred to as 'antidumping 
duties'), if any, imposed upon designated imported merchandise of a 
clasr or kind manufactured, produced, or sold at wholesale by him. If 
such manufacturer, producer, or wholesaler believes that the appraised 
value is too low, that the classification is not correct, that the proper 
rate of duty is not being assessed, or that countervailing duties or anti- 
dumping duties should be assessed, he may file a petition with the 
Secretary setting forth (1) a description of the merchandise, (2) the 
appraised value, the classification, or the rate or rates of dutj^ that he 
believes proper, and (3) the reasons for his belief including, m appro- 
priate instances, the reasons for his belief that countervailing duties 
or antidumping duties should be assessed. 

"(b) If, after receipt and consideration of a petition filed by an 
American manufacturer, producer, or wholesaler, the Secretary de- 
cides that the appraised value of the merchandise is too low, that the 



19 U.S.C. 161. p. 110 for text. 



56 

classification of the article or rate of duty assessed thereon is not cor- 
rect, or that countervailing duties or antidumping duties should be 
assessed, he shall determine the proper appraised value or classifica- 
tion, rate of duty, or countervailing duties, or antidumping duties and 
shall notify the petitioner of his determination. Except for counter- 
vailing duty and antidumping duty purposes, all such merchandise en- 
tered for consumption or withdrawn from warehouse for consumption 
more than thirty days after the date such notice to the petitioner is 
published in the weekly Customs Bulletin shall be appraised or classi- 
fied or assessed as to rate of duty in accordance with the Secretary's 
determination. For countervailing duty purposes, the procedures set 
forth in section 303 shall apply. For antidumping duty purposes, the 
procedures set forth in section 201 of the Antidumping Act, 1921,^' 
shall apply. 

" (c) If the Secretary decides that the appraised value or classifica- 
tion of the articles or the rate of duty with respect to which a petition 
was filed pursuant to subsection (a) is correct, or that countervailing 
duties or antidumping duties should not be assessed, he shall so inform 
the petitioner. If dissatisfied with the decision of the Secretary, the 
petitioner may file with the Secretary, not later than thirty days after 
the date of the decision, notice that he desires to contest the appraised 
value or classification of, or rate of duty assessed upon or the failure to 
assess countervailing duties or antidumping duties upon, the merchan- 
dise. Upon receipt of notice from the petitioner, the Secretary shall 
cause publication to be made of his decision as to the proper appraised 
value or classification or rate of duty or that countervailing duties or 
antidumping duties should not be assessed and of the petitioner's desire 
to contest, and shall thereafter furnish the petitioner with such infor- 
mation as to the entries and consignees of such merchandise, entered 
after the publication of the decision of the Secretary at such ports of 
entry designated by the petitioner in his notice of desire to contest, as 
will enable the petitioner to contest the appraised value or classifica- 
tion of, or rate of duty imposed upon or failure to assess countervailing 
duties or antidumping duties upon, such merchandise in the liquidation 
of one such entry at such port. The Secretary shall direct the appro- 
priate Customs officer at such ports to notify the petitioner by mail 
immediately when the first of such entries is liquidated." 

(c) Section 515(d) of the Tariff Act of 1930 (19 U.S.C. 1315(d)) 
is amended by inserting before the period at the end thereof "or the 
imposition of countervailing duties under section 303". 

(d) (1) The amendments made by this section shall take effect on the 
date of the enactment of this Act. 

(2) For purposes of applying the provisions of section 303(a) (4) 
of the Tariff Act of 1930 (as amended by subsection (a) ) with respect 
to any investigation which was initiated before the date of the enact- 
ment of this Act under section 303 of such Act (as in effect before such 
date), such investigation shall be treated as having been initiated' on 
the day after such date of enactment under section 303(a) (3) (B) of 

such Act. , , . 1 ^ 

(3) Any article which is entered or withdrawn from warehouse tree 
of duty as a result of action taken under title V of this Act shall be 
considered a nondutiable article for purposes of section 303 of the 
Tariff Act of 1930, as amended (19 U.S.C. sec. 1303). 



57 
Chapter 4 — Unfair Import Practices 

Sec. 341. Amendment to Section 337 of the Tariff Act of 1930. 

(a) Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is 
amended to read as follows : 

"Sec. 337. Unfair Practices in Import Trade. 

"(a) Unfair Methods of CoMPETrnoN Declared Unlawful. — 
Unfair methods of competition and unfair acts in the importation of 
articles into the United States, or in their sale by the owner, importer, 
consignee, or agent of either, the effect or tendency of which is to 
destroy or substantially injure an industry, efficiently and economically 
operated, in the United States, or to prevent the establishment of 
such an industry, or to restrain or monopolize trade and commerce in 
the United States, are declared unlawful, and when found by the 
Commission to exist shall be dealt with, in addition to any other 
provisions of law, as provided in this section. 

"(b) Investigations of Violations by Commission ; Time Limits. — 
(1) The Commission shall investigate any alleged violation of this 
section on complaint under oath or upon its initiative. Upon com- 
mencing any such investigation, the Commission shall publish notice 
thereof in the Federal Register. The Commission shall conclude any 
such investigation, and make its determination under this section, at 
the earliest practicable time, but not later than one year (18 months 
in more complicated cases) after the date of publication of notice of 
such investigation. The Commission shall publish in the Federal 
Register its reasons for designating any investigation as a more com- 
plicated investigation. For purposes of the one-year and 18-month 
periods prescribed by this subsection, there shall be excluded any 
period of time during which such investigation is suspended because of 
proceedings in a court or agency of the United States involving 
similar questions concerning the subject matter of such investigation. 

"(2) During the course of each investigation under this section, the 
Commission shall consult with, and seek advice and information from, 
the Department of Health, Education, and Welfare, the Department 
of Justice, the Federal Trade Commission, and such other departments 
and agencies as it considers appropriate. 

"(3) Whenever, in the course of an investigation under this section, 
the Commission has reason to believe, based on information before it, 
that the matter may come within the purview of section 303 or of the 
Antidumping Act, 1921, it shall promptly notify the Secretary of the 
Treasury so that such action may be taken as is otherwise authorized 
by such section and such Act. 

"(c) Determinations; Review. — The Commission shall determine, 
with respect to each investigation conducted by it under this section, 
whether or not there is a violation of this section. Each determination 
under subsection (d) or (e) shall be made on the record after notice 
and opportunity for a hearing in conformity with the provisions of 
subchapter II of chapter 5 of title 5, United States Code. All legal 
and equitable defenses may be presented in all cases. Any person 
adversely affected by a final determination of the Commission under 



20-594 O - 78 - 5 



58 

subsection (d) or (c) may appeal siicli detiMinination to the United 
States Court of Customs and Patent Appeals. Sucli court shall have 
jurisdiction to review such determination in the same manner and 
subject to the same limitations and conditions as in the case of appeals 
from decisions of the United States Customs Court. 

"(d) Exclusion of Articles From Entry. — If the Commission 
determines, as a result of an investigation under this section, that 
there is violation of this section, it shall direct that the jiiticles con- 
cerned, imported by any person violating the provision of this section, 
be excluded from entry into the United States, unless, after consider- 
ing the effect of such exclusion upon the public health and welfare, 
competitive conditions in the United States economy, the production 
of like or directly competitive articles in the United States, and United 
States consumers, it finds that such articles should not be excluded 
from entry. The Commission shall notify the Secretary of the Treasury 
of its action under this subsection directing such exclusion from 
entry, and upon receipt of such notice, the Secretary shall, throuirh 
the proper officers, refuse such entry. 

"(e) Exclusion of Articles From Entry Durino Investigation 
Except Under Bond. — If, during the course of an investigation under 
this section, the Commission determines that there is reason to believe 
that there is a violation of this section, it may direct that the articles 
concerned, imported by any person with respect to whom thei'e is rea- 
son to believe that such person is violating this section, be excluded 
from entry into the United States, unless after considering the effect of 
such exclusion upon the public health and welfare, competitive con- 
ditions in the United States economy, the production of like or directly 
competitive articles in the United States, and United States consumers, 
it finds that such articles should not be excluded from entry. The 
Commission shall notify the Secretary of the Treasury of its action 
under this subsection directing such exclusion from entry, and upon 
receipt of such notice, the Secretary shall, through the j) roper officers, 
refuse such entry, except that such articles shall be entitled to entr}' 
under bond determined by the Commission and prescribed by the 
Secretary. 

"(f) Cease and Desist Orders. — In lieu of taking action under 
subsection (d) or (e), the Commission may issue and cause to be 
served on any person violating this section, or believed to be violating 
this section, as the case may be, an order directing such person to 
cease and desist from engaging in the unfair methods or acts involved, 
unless after considering the effect of such order upon the public health 
and welfare, competitive conditions in the United States economy, the 
production of like or directly competitive articles in the United 
States, and United States consumers, it finds that such order should 
not be issued. The Commission may at any time, upon such notice 
and in such manner as it deems proper, modify or revoke any such 
order, and, in the case of a revocation, may take action under subsection 
(d) or (e) , as the case may be. 

"(g) Keferral to the President. — (1) If the Commission deter- 
mines that there is a violation of this section, or that, for purposes 
of subsection (e) , there is reason to believe that there is such a viola- 
tion, it shall — 



59 

"(A) publish such determination in the Federal Register, and 
"(B) transmit to the President a copy of such determination 
and the action taken under subsection (d), (e), or (f), with re- 
spect thereto, together with the record upon which such deter- 
mination is based. 

"(2) If, before the close of the 60-day period beginning on the 
day after the day on which he receives a copy of such determination, 
the President, for policy reasons^ disapproves such determination and 
notifies the Commission of his disapproval, then, effective on the date 
of such notice, such determination and tlie action taken under subsec- 
tion (d), (ej, or (f) with respect thereto shall have no force or effect. 

"(3) Subject to the provisions of paragraph (2). such determina- 
tion shall, except for purposes of subsection (c), be effective upon 
publication thereof in the Federal Register, and the action taken under 
subsection (d), (e), or (f) with respect thereto shall be effective as 
provided in such subsections, except that articles directed to be ex- 
cluded from entry under subsection (d) or subject to a cease and 
desist order under subsection (f) shall be entitled to entry under 
bond determined by the Commission and prescribed by the Secretary 
until such determination becomes final. 

"(4) If the President does not disapprove such determination 
within such 60-day period, or if he notifies the Commission before the 
close of such period that he approves such determination, then, for 
purposes of paragraph (3) and subsection (c) such determination 
shall become final on the day after the close of such period or the day 
on which the President notifies the Commission of his approval, as 
the case may be. 

"(h) Period of Effectiveness. — Except as provided in subsections 
(f) and (g), any exclusion from entry or order under this section 
shall continue in effect until the Commission finds, and in the case of 
exclusion from entry notifies the Secretary of the Treasury, that the 
conditions which led to such exclusion from entry or order no longer 
exist. 

"(i) Importation by or for the United States. — Any exclusion 
from entry or order under subsection (d) , (e) , or (f ) , in cases based on 
claims of United States letters patent, shall not apply to any articles 
imported by and for the use of the United States, or imported for, 
and to be used for, the United States with the authorization or consent 
of the Government. Whenever any article would have been excluded 
from entry or would not have been entered pursuant to the provisions 
of such subsections but for the operntion of this subsection, a patent 
owner adversely affected shall be entitled to reasonable and entire 
compensation in an action before the Court of Claims pursuant to the 
procedures of section 1498 of title 28, United States Code. 

"(j) Definition of United States. — For purposes of this section 
and sections 338 and 340, the term 'United States' means the customs 
territory of the United States as defined in general headnote 2 of the 
Tariff Schedules of the United States." 

(b) Section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) 
is amended by adding at the end thereof the following new sentence : 
"Each such annual report shall include a list of all complaints filed 
under section 337 during the year for which such report is being made, 



60 

the date on which each such complaint was filed, and the action taken 
thereon, and the status of all investigations conducted by the commis- 
sion under such section during such year and the date on which each 
such investigation was commenced." 

(c) The amendments made by this section shall take effect on the 
90th day after the date of the enactment of this Act, except that, for 
purposes of issuing regulations under section 337 of the Tariff Act of 
1930, such amendments shall take effect on the date of the enactment 
of this Act. For purposes of applying section 337(b) of the Tariff 
Act of 1930 (as amended by subsection (a)) with respect to investi- 
gations being conducted by the International Trade Commission under 
section 337 of the Tariff Act on the day prior to the 90th day after the 
date of the enactment of this Act, such investigations shall be con- 
sidered as having been commenced on such 90th day. 

TITLE IV—TRADE RELATIONS WITH COUNTRIES 
NOT CURRENTLY RECEIVING NONDISCRIMINATORY 
TREATMENT 

Sec. 401. Exception of the Products of Certain Countries or 
Areas. 

Except as otherwise provided in this title, the President shall con- 
tinue to deny nondiscriminatory treatment to the products of any 
country, the products of which were not eligible for the rates set forth 
in rate column numbered 1 of the Tariff Schedules of the United States 
on the date of the enactment of this Act. 

Sec. 402. Freedom of Emigration in East-West Trade. 

(a) To assure the continued dedication of the United States to 
fundamental human rights, and notwithstanding any other provision 
of law, on or after the date of the enactment of this Act products from 
any nonmarket economy country shall not be eligible to receive non- 
discriminatory treatment (most-favored-nation treatment) , such coun- 
try shall not participate in any program of the provemment of the 
United States which extends credits or credit guarantees or investment 
guarantees, directly or indirectly, and the President of the United 
States shall not conclude any commercial agreement Avith any such 
country, during the period beginning with the date on which the 
President determines that such country — 

(1) denies its citizens the right or opportunity to emigrate; 
^ (2) imposes more than a nominal tax on emigration or on the 
visas or other documents required for emigration, for any purpose 
or cause whatsoever ; or 

(3) imposes more than a nominal tax, levy, fine, fee, or other 
chargfe on any citizen as a consequence of the desire of such citizen 
to emigrate to the country of his choice, 
and ending on the date on which the President determines that such 
country is no longer in violation of paragraph (1), (2). or (3). 

(b) After the date of the enactment of this Act, (A) products 
of a nonmarket economy country may be eligible to receive nondis- 
criminatory treatment (most-favored-nation treatment), (B) such 
country may participate in any program of the Government of the 



61 

United States which extends credits or credit guarantees or investment 
guarantees, and (C) the President may conchide a commercial agree- 
ment with such countiy, only after the President has submitted to the 
Congress a i*eport indicating that such country is not in violation of 
paragraph (1), (*2),or (:^) of subsection (a). S\uh report with respect 
to such counti-}' shall include information as to the nature and imple- 
mentation of emigration laws and policies and restnctioiis or discrim- 
ination applied to or against pei*sons wishing to emigrate. The report 
required by this subsection shall be sumitted initially as provided 
herein and. with current information, on or before each June 30 and 
December 81 thereafter so long as such treatment is received, such 
credits or guarantees are extended, or such agreement is in effect. 
(c)(1) During the 18-month periml beginning on the date of the 
enactment of this Act. the President is authorized to waive by Execu- 
tive order the application of subsection (a) and (b) with respect to 
any country, if he reports to the Congress that — 

(A) he has determined that such waiver will substantially pro- 
mote the objectives of this section : and 

(B) he has received assurances that the emigration practices 
of that country will hencefoith lead substantially to the achieve- 
ment of the objectives of this section, 

(2) During any period subsequent to the 18-month period referred 
to in paragraph (1), the President is authorized to waive by Execu- 
tive order the application of subsections (a) and (b) with respect to 
any country, if the waiver authority granted by this subsection con- 
tinues to apply to such country pursuant to subsection (d), and if he 
reports to the Congress that — 

(A) he has determined that such waiver will substantially pro- 
mote the objectives of this section : and 

(B) he has received assurances that the emigration practices of 
that country will henceforth lead substantially to the achievement 
of the objectives of this section. 

(3) A waiver with respect to any country shall terminate on the 
day after the waiver authority granted by this subsection ceases to be 
effective with respect to such country pui*suant to subsection (d). The 
President may. at any time, terminate by Executive order any waiver 
granted under this subsection. 

(d) (1) If the President determines that the extension of the waiver 
authority granted by subsection (c) (1) will substantially promote the 
objectives of this section, he may recommend to the Congress that such 
authority be extended for a period of 12 months. Any such recommen- 
dation shall — 

(A) be made not later than 80 days before the expiration of 
such authority: 

(B) be made in a document transmitted to the House of Eepre- 
sentatives and the Senate settinrr forth his reasons for recommend- 
ing the extension of such authority : and 

(C) include, for each countrv with respert to which a waiver 
granted under subsection (c) (1) is in effect, a determination that 
continuation of the waiver applicable to that country' will sub- 
stantiallv promote the objectives of this section, and a statement 
setting forth his reasons for such determination. 



62 

(2) If the President recommends under paragraph (1) the exten- 
sion of the waiver authority granted by subsection (c) (1), such au- 
thority shall continue in effect with respect to any country for a period 
of 12 months following the end of the 18-month period, referred to 
in subsection (c) (1), if, before the end of such 18-month period, the 
House of Representatives and the Senate adopt, by an affirmative vote 
of a majority of the Members present and voting in each House and 
under the procedures set forth in section 158, a concurrent resolution 
approving the extension of such authority, and such resolution does 
not name such country as being exchided from such authority. Such 
authority shall cease to be effective with respect to any country named 
in such concurrent resolution on the date of the adoption of such con- 
current resolution. If before the end of such 18-month period, a con- 
current resolution approving the extension of such authority is not 
adopted by the House and the Senate, but both the House and Senate 
vote on the question of final passage of such a concurrent resolution 
and — 

(A) both the House and the Senate fail to pass such a concur- 
rent resolution, the authority granted by subsection (c) (1) shall 
cease to be effective with respect to all countries at the end of such 
18-month period; 

(B) both the House and the Senate pass such a concurrent 
resolution which names such country as being excluded from such 
authority, such authority shall cease to be effective with respect 
to such country at the end of such 18-month period ; or 

(C) one House fails to pass such a concurrent resolution and 
the other House passes such a concurrent resolution which names 
such country as being excluded from such authority, such author- 
ity shall cease to be effective with respect to such country at the 
end of such 18-month period. 

(3) If the President recommends under paragraph (1) the exten- 
sion of the waiver authority granted by subsection (c) (1), and at the 
end of the 18-nionth period* referred to in subsection (c) (1) the House 
of Representatives and the Senate have not adopted a concurrent reso- 
lution approving the extension of such authority and subparagraph 
(A) of paragraph (2) does not apply, such authority shall continue 
in effect for a period of 60 days following the end of such 18-month 
period with respect to any country (except for any country with 
respect to which such authority was not extended by reason of the 
application of subparagraph (B) or (C) of paragraph (2)), and 
shall continue m effect for a period of 12 months following the end 
of such 18-month period with respect to any such country if, before 
the end of such 60-day period, the House of Representatives and the 
Senate adopt, by an affirmative vote of a majority of the Members 
present and voting in each House and under the procedures set forth 
in section 153, a concurrent resolution approving the extension of such 
authority, and such resolution does not name such country as being 
excluded from such authority. Such authority shall cease to be effec- 
tive with respect to any country named in such concurrent resolution 
^^ ^ ^^ ^^^ ^^ ^^^ adoption of such concurrent resolution. If before 
the end of such 60-day period, a concurrent resolution approving the 
extension of such authority is not adopted by the House and Senate, 
but both the House and Senate vote on the question of final passage of 
such a concurrent resolution and — 



63 

(A) both the House and the Senate fail to puss sucli a concur- 
rent resolution, the authority granted by subsection (c) (1) shall 
cease to be effective with respect to all countries on the date of the 
vote on the question of final passage by the House which votes 
last; 

(B) both the House and the Senate pass such a concurrent 
resolution which names such country as being excluded from such 
authority, such authority shall cease to be effective with respect 
to such country at the end of such 60-day period ; or 

(C) one House fails to pass such a concurrent resolution and 
the other House passes such a concurrent resolution which names 
such country as being excluded from such authority, such author- 
ity shall cease to be effective with respect to such country at the 
end of such 60-day period. 

(4) If the President recommends under paragraph (1) the exten- 
sion of the waiver authority granted by subsection (c) (1), and at the 
end of the 60-day period referred to in paragraph (3) the House of 
Representatives and the Senate have not adopted a concurrent reso- 
lution approving the extension of such authority and subparagraph 
(A) of paragraph (3) does not apply, such authority shall continue 
in effect until the end of the 12-month period following the end of the 
18-month period referred to in subsection (c) (1) with respect to any 
country (except for any country with respect to which such authority 
was not extended by reason of the application of subparagraph (B) 
or (C) of paragraph (2) or subparagraph (B) or (C) of paragraph 
(3) ) , unless before the end of the 45-aay period following such 60-day 
period either the House of Representatives or the Senate adopts, by 
an affirmative vote of a majority of the Members present and voting 
in that House and under the procedures set forth in section 153, a reso- 
lution disapproving the extension of such authority generally or with 
respect to such country specifically. Such authority shall cease to be 
effective with respect to all countries on the date of the adoption by 
either House before the end of such 45-day period of a resolution dis- 
approving the extension of such authority, and shall cease to be effec- 
tive with respect to any country on the date of the adoption by either 
House before the end of such 45-day period of a resolution disapprov- 
ing the extension of such authority with respect to such country. 

(5) If the waiver authority granted by subsection (c) has been ex- 
tended under paragraph (3) or (4) for any country for the 12-month 
period referred to in such paragraphs, and the President determines 
that the further extension of such authority will substantially pro- 
mote the objectives of this section, he may recommend further exten- 
sions of such authority for successive 12-month periods. Any such 
recommendations shall — 

(A) be made not later than 30 days before the expiration of 
such authority; 

(B) be made in a document transmitted to the House of Repre- 
sentatives and the Senate setting foi-th his reasons for recom- 
mending the extension of such authority ; and 

(C) include, for each country with respect to which a waiver 
granted under subsection (c) is in effect, a determination that 
continuation of the waiver applicable to that country will sub- 
stantially promote the objectives of this section, and a statement 
setting forth his reasons for such determination. 



64 

If the President recommends the further extension of such authority, 
such authority shall continue in eifect until the end of the 12-month 
period following the end of the previous 12-month extension with 
respect to any country (except for any country with respect to which 
such authority has not been extended under this subsection), unless 
before the end of the- 60-day period following such previous 12-month 
extension, either the House of Representatives or the Senate adopts, 
by an affirmative vote of a majority of the Members present and voting 
in that House and under the procedures set forth in section 153, a 
resolution disapproving the extension of such authority generally or 
with respect to such country specifically. Such authority shall cease 
to be effective with respect to all countries on the date of the adoption 
by either House before the end of such 60-day period of a resolution 
disapproving the extension of such authority, and shall cease to be 
effective with respect to any country on the date of the adoption by 
either House before the end of such 60-day period of a resolution dis- 
approving the extension of such authority with respect to such country. 
, (e) This section shall not apply to any country the products of 
which are eligible for the rates set forth in rate column numbered 1 
of the Tariff Schedules of the United States ^^ on the date o,f the enact- 
ment of this Act. 

Sec. 403. United States Personnel Missing in Action in Southeast 
Asia. 

(a) Notwithstanding any other provision of law, if the President 
determines that a nonmarket economy country is not cooperating with 
the United States — 

(1) to achieve a complete accounting of all United States 
military and civilian personnel who are missing in action in 
Southeast Asia, 

(2) to repatriate such personnel who are alive, and 

(3) to return the remains of such personnel who are dead to the 
United States, 

then, during the period beginning with the date of such determina- 
tion and ending on the date on which the President determines such 
country is cooperating with the United States, he may provide that-^- 

( A) the products of such country may not receive nondiscrimi- 
natory treatment, 

(B) such country may not participate, directly or indirectly, 
in any program under which the United States extends credit, 
credit guarantees, or investment guarantees, and 

(C) no commercial as^reement entered into under this title 
between such country and the United States will take effect. 

(b) This section shall not apply to any country the products of 
which are eliq-ible for the rates set forth in rate column numbered 1 
of the Tariff Schedules of the United States ^^ on the date of the enact- 
ment of this Act. 

Sec. 404. Extension of Nondiscriminatory Treatment. 

(a) Subject to the provisions of section 405(c), the President may 
by proclamation extend nondiscriminatory treatment to the products 



23 19 U.S.C. 1202. 



65 

of a foreign country which has entered into a bilateral commercial 
agreement referred to in section 405. 

(b) The application of nondiscriminatory treatment shall be limited 
to the period of effectiveness of the obligations of the United States 
to such country under such bilateral commercial agreement. In addi- 
tion, in the case of any foreign country receiving nondiscriminatory 
treatment pursuant to this title which has entered into an agreement 
with the United States regarding the settlement of lend-lease reciprocal 
aid and claims, the application of such nondiscriminatory treatment 
shall be limited to periods during which such country is not in arrears 
on its obligations under such agreement. 

(c) The President may at any time suspend or withdraw any exten- 
sion of nondiscriminatory treatment to any country pursuant to sub- 
section (a), and thereby cause all products of such country to bo 
dutiable at the rates set forth in rate column numbered 2 of the Tar- 
iff Schedules for the United States." 

Sec. 405. Authority to Enter Into Commercial Agreements. 

(a) Subject to the provisions of subsections (b) and (c) of this sec- 
tion, the President may authorize the entry into force of bilateral 
commercial agreements providing nondiscriminatory treatment to the 
products of countries heretofore denied such treatment whenever he 
determines that such agreements with such countries will promote the 
purposes of this Act and are in the national interest. 

(d) Any such bilateral commercial agreement shall — 

(1) be limited to an initial period specified in the agreement 
which shall be no more than 3 years from the date the agreement 
enters into force ; except that it may be renewable for additional 
periods, each not to exceed 3 years; if — 

(A) a satisfactory balance of concessions in trade and serv- 
ices has been maintained during the life of such agreement, 
and 

(B) the President determines that actual or foreseeable 
reductions in United States tariffs and nontariff barriers to 
trade resulting from multilateral negotiations are satisfac- 
torily reciprocated by the other party to the bilateral 
agreement ; 

(2) provide that it is subject to suspension or termination at 
any time for national security reasons, or that the other provisions 
of such agreement shall not limit the rights of any party to take 
any action for the protection of its security interests ; 

(3) include safeguard arrangements (A) providing for prompt 
consultations whenever either actual or prospective imports cause 
or threaten to cause, or significantly contribute to, market disrup- 
tion and (B) authorizing the imposition of such import restric- 
tions as may be appropriate to prevent such market disruption; 

(4) if the other party to the bilateral agreement is not a party 
to the Paris Convention for the Protection of Industrial Prop- 
erty,2* provide rights for United States nationals with respect to 
patents and trademarks in such country not less than the rights 
specified in such convention; 

«* 21 UST 1583. 



66 

(5/ if the other party to the bilateral agreement is not a party 
to tne Universal Copyright Convention,^^ provide rights for 
United States nationals with respect to copyrights in such 
country not less than the rights specified in such convention; 

(6) in the case of an agreement entered into or renewed after 
the date of the enactment of this Act, provide arrangements for 
the protection of industrial rights and processes ; . i j. # 

(7) provide arrangements for the settlement of commercial dif- 
ferences and disputes ; 

(8) in the case of an agreement entered into or renewed after 
the date of the enactment of this Act, provide arrangements for 
the promotion of trade, which may include those for the estab- 
lishment or expansion of trade and tourist promotion offices, for 
facilitation of activities of governmental commercial officers, par- 
ticipation in trade fairs and exhibits, and the sending of trade 
missions, and for facilitation of entry, establishment, and travel 
of commercial representatives ; 

(9) provide for consultations for the purpose of reviewing the 
operation of the agreement and relevant aspects of relations be- 
tween the United States and the other party ; and 

(10) provide such other arrangements of a commercial nature 
as will promote the purposes of this Act. 

(c) An agreement referred to in subsection (a), and a proclamation 
referred to in section 404(a) implementing such agreement, shall 
take effect only if (1) approved by the Congress by the adoption of a 
concurrent resolution referred to in section 151, or (2) in tne case of 
an agreement entered into before the date of the enactment of this 
Act and a proclamation implementing such agreement, a resolution of 
disapproval referred to in section 152 is not adopted during the 90-day 
period specified by section 407(c) (2). 

Sec. 406. Market Disruption. 

(a) (1) Upon the filing of a petition by an entity described in sec- 
tion 201(a) (1), upon request of the President or the Special Repre- 
sentative for Trade Negotiations, upon resolution of either the Com- 
mittee on Ways and Means of the House of Representatives or the 
Committee on Finance of the Senate, or on its own motion, the Inter- 
national Trade Commission (hereafter in this section referred to as 
the "Commission") shall promptljr make an investigation to determine, 
with respect to imports of an article which is the product of a Com- 
munist country, whether market disruption exists with respect to an 
article produced by a domestic industir. 

(2) The provisions of subsections (a) (2), (b) (3), and (c) of sec- 
tion 201 shall apply with respect to investigations by the Commission 
under paragraph (1). 

(3) The Commission shall report to the President its determination 
with respect to each investigation under paragraph (1) and the basis 
therefor and shall include m each report any dissenting or separate 
views. If the Commission finds, as a result of its investigation, that 
market, disruption exists with respect to an article produced by a 

25 6 UST2731. 



67 

domestic industry, it shall find the amount of the increase in, or imj)Osi- 
tioii of, any duty or otlier iinpoil restriction on sucli article which is 
necessary to prevent or remedy such market disruption and shall 
include such finding in its report to the President. The Commission 
shall furnish to the President a transcript of the hearings and any 
briefs which may have been submitted in connection with each 
investigation. 

(4) The report of the Commission of its determination with respect 
to an investigation under paragraph ( 1 ) shall be made at the earliest 
practicable time, but not later than 3 months after the date on which 
the petition is filed (or the date on which the request or resolution is 
received or the motion is adopted, as the case may be). Upon making 
such report to the President, the Commission shall also promptly make 
public such report (with the exception of information which the Com- 
mission determines to be confidential) and shall cause a summary 
thereof to be published in the Federal Register. 

(b) For purposes of sections 202 and 203, an affirmative determina- 
tion of the Commission under subsection (a) shall be treated as an 
affirmative determination under section 201 (b) , except that — 

(1) the President may take action under sections 202 and 203 
only with respect to imports from the country or countries in- 
volved of the article with respect to which the affirmative deter- 
mination was made, and 

(2) if such action consists of, or includes, an orderly marketing 
agreement, such agreement shall be entered into within 60 days 
after the import relief determination date. 

(c) If, at any time, the President finds that there are reasonable 
grounds to believe, with respect to imports of an article which is the 
product of a Communist country, that market disruption exists with 
respect to an article produced by a domestic industry, he shall request 
the Commission to initiate an investigation under subsection (a). If 
the President further finds that emergencj^ action is necessary, he may 
take action under sections 202 and 203 as if an affirmative determina- 
tion of the Commission had been made under subsection (a). Any 
action taken by the President under the preceding sentence shall 
cease to apply (1) if a negative determination is made by the Com- 
mission under subsection (a) with respect to imports of such article, 
on the day on which the Commission's report of such determination 
is submitted to the President, or (2) if an affirmative determination is 
made by the Commission under subsection (a) with respect to imports 
of such article, on the day on which the action taken by the President 
pursuant to such determination becomes effective. 

(d)(1) A petition may be filed with the President by an entity 
described in section 201(a)(1) requesting the President to initiate 
consultations provided for by the safeguard arrangements of any 
agreement entered into under section 405 with respect to imports of 
an article which is the product of the country which is the other party 
to such agreement. 

(2) If the President determines that there are reasonable grounds 
to believe, with respect to imports of such article, that market dis- 
ruption exists with respect to an article produced by a domestic indus- 
try, he shall initiate consultations with such country with respect to 
such imports. 



68 

(e) For purposes of this section — 

(1) The term "Communist country" means any country domi- 
nated or controlled by communism. 

(2) Market disruption exists within a domestic industry when- 
ever imports of an article, like or directly competitive with an 
article produced by such domestic industry, are increasing rap- 
idly, either absolutely or relatively, so as to be a significant cause 
of material injury, or threat thereof, to such domestic ijidustry. 

Sec. 407. Procedure for Congressional Approval or Disapproval 
of Extension of Nondiscriminatory Treatment and Presi- 
dential Reports. 

(a) Whenever the President issues a proclamation under section 404 
extending nondiscriminatory treatment to the products of any for- 
eign country, he shall promptly transmit to the House of Representa- 
tives and to the Senate a document setting forth the proclamation and 
the agreement the proclamation proposes to implement, together with 
his reasons therefor. 

(b) The President shall transmit to the House of Representatives 
and the Senate a document containing the initial report submitted by 
him under section 402(b) or 409(b) with respect to a nonmarket econ- 
omy country. On or before December 31 of each year, the President 
shall transmit to the House of Representatives and the Senate, a docu- 
ment containing the report required by section 402(b) or 409(b) as 
the case may be, to be submitted on or before such December 31. 

(c) (1) In the case of a document referred to in subsection (a) 
(other than a document to which paragraph (2) applies), the procla- 
mation set forth therein may become effective and the agreement set 
forth therein may enter into force and effect only if the House of 
Representatives and the Senate adopt, by an affirmative vote of a 
majority of those present and voting in each House, a concurrent 
resolution of approval (under the procedures sot forth in section 151) 
of the extension of nondiscriminatory treatment to the products of 
the country concerned. 

(2) In the case of a document referred to in subsection (a) which 
sets forth an agreement entered into before the date of the enactment 
of this Act and a proclamation implementing such agreement, such 
proclamation may become effective and such agreement may enter into 
force and effect after the close of the 90-day period beginning on the 
day on which such document is delivered to the House of Representa- 
tives and to the Senate, unless during such 90-day period either the 
House of Representatives or the Senate adopts, by an affirmative vote 
of a majority of those present and voting in that House, a resolution 
of disapproval (under the procedures set forth in section 152) of the 
extension of nondiscriminatory treatment to the products of the coun- 
try concerned. 

(3) In the case of a document referred to in subsection (b) which 
contains a report submitted by the President under section 402(b) or 
409(b) with respect to a nonmarket economy country, if, before the 
close of the 90-day period beginning on the day on which snch docu- 
ment is delivered to the House of Representatives and to the Senate, 
either the House of Representatives or the Senate adopts, by an affirm- 
ative vote of a majority of those present and voting in that House, a 



69 

resolution of disapproval (under the procedures set forth in section 
152) of the report submitted by the President with respect to such 
country, then, beginning with the day after the date of the adoption 
of such resolution of disapproval, (A) nondiscriminatory treatment 
shall not be in force with respect to the products of such country, and 
the products of such country shall be dutiable at the rates set forth in 
rate column numbered 2 of the Tariff Schedules of the United States,'* 
(B) such country may not participate in any program of the Govern- 
ment of the United States which extends credit or credit guarantees 
or investment guarantees^ and (C) no commercial agreement may 
thereafter be concluded with such country under this title. 

Sec. 408. Payment by Czechoslovakia of Amounts Owed United 
States Citizens and Nationals. 

(a) The arrangement initiated on July 5, 1974 with respect to tho 
settlement of the claims of citizens and nationals of the United States 
against the Government of Czechoslovakia shall be renegotiated and 
shall be submitted to the Congress as part of any agreement entered 
into under this title with Czechoslovakia. 

(b) The United States shall not release any gold belonging to 
Czechoslovakia and controlled directly or indirectly by the United 
States pursuant to the provisions of the Paris Reparations Agree- 
ment of January 24, 1946,-^ or otherwise, until such agreement has 
been approved by the Congress. 

Sec. 409. Freedom to Emigrate to Join a Very Close Relative in 
the United States. 

(a) To assure the continued dedication of the United States to the 
fundamental human rights and welfare of its own citizens, and not- 
withstanding any other provision of law, on or after the date of the 
enactment of this Act, no nonmarket economy country shall partici- 
pate in any program of the Government of the United States which ex- 
tends credits or credit guarantees or investment guarantees, directly or 
indirectly, and the President of the United States shall not conclude 
any commercial agreement with any such country, during the period 
beginning with the date on which the President determines that such 
country — 

(1) denies its citizens the right or opportunity to join per- 
manently through emigration, a very close relative in the United 
States, such as a spouse, parent, child, brother, or sister ; 

(2) imposes more than a nominal tax on the visas or other docu- 
ments required for emigration described in paragraph ( 1 ) ; or 

(3) imposes more than a nominal tax, levy, fine, fee, or other 
charge on any citizen as a consequence of the desire of such 
citizen to emigrate as described in paragraph ( 1) , 

and ending on the date on which the President determines that such 
country is no longer in violation of paragraph (1), (2), or (3). 

(b) After the date of the enactment of this Act, (A) a nonmarket 
economy country may participate in any proc:i'am of the Government 
of the United States which extends credits or credit guarantees or 
investment guarantees, and (B) the President may conclude a com- 
mercial agreement with such country, only after the President has 

»61 Stat. 3157. 



70 

submitted to the Congress a report indicating that such country is not 
in violation of paragraph (1), (2), or (3) of subsection (a). Such 
report with respect to such country shall include information as to 
the nature and implementation of its laws and policies and restrictions 
or discrimination applied to or against persons wishing to emigrate 
to the United States to join close relatives. The report required by this 
subsection shall be submitted initially as provided herein and, with 
current information, on or before each June 30 and December 31 there- 
after, so long as such credits or guarantees are extended or such agree- 
ment is in effect. 

(c) This section shall not apply to any country the products of 
which are eligible for the rates set forth in rate column numbered 1 
of the Tariff Schedules of the United States ^^ on the date of enactment 
of this Act. 

(d) During any period that a waiver is in effect with respect to any 
nonmarket economy country under section 402(c), the provisions of 
subsections (a) and (b) shall not apply with respect to such country. 

Sec. 410. East- West Trade Statistics Monitoring System. 

The International Trade Commission shall establish and maintain 
a program to monitor imports of articles into the United States from 
nonmarket economy countries and exports of articles from the United 
States to nonmarket economy countries. To the extent feasible, the 
Commission shall coordinate such program with any relevant data 
gathering programs presently conducted by the Secretary of Com- 
merce. The Secretary of Commerce shall provide the Commission 
with any information which, in the determination of the Commission, 
is necessary to carry out this section. The Commission shall publish 
a detailed summary of the data collected under the East-West Trade 
Statistics Monitoring System not less frequently than once each calen- 
dar quarter and shall transmit such publication to the East- West 
Foreign Trade Board and to Congress. Such publication shall include 
data on the effect of such imports, if any, on the production of like, or 
directly competitive, articles in the United States and on employment 
within the industry which produces like, or directly competitive, 
articles in the United States. 

Sec. 411. East-West Foreign Trade Board. 

(a) The President shall establish an East- West Foreign Trade 
Board (hereinafter referred to as the "Board") to monitor trade 
between persons and agencies of the United States Government and 
nonmarket economy countries or instrumentalities of such countries 
to insure that such trade will be in the national interest of the United 
States. 

(b) (1) Any person who exports technology vital to the national 
interest of the United States to a nonmarket economy country or an 
instrumentality of such country, and any agency of the United States 
which provides credits, guarantees or insurance to such country or 
such instrumentality in an amount in excess of $5,000,000 during any 
calendar year, shall file a report with the Board in such form and 
manner as the Board requires which describes the nature and terms 
of such export or such provision. 



I 



71 

(2) For purposes of paragraph (1), if the total amount of credits, 
guarantees and insurance which an agency of the United States pro- 
vides to all nonmarket economy countries and the instrumentalities 
of such countries exceeds $5,000,000 during a calendar year, then all 
subsequent provisions of credits, gurantees or insurance in any 
amount, during such year shall be reported to the Board under the 
provisions of paragraph ( 1 ) . 

(c) The Board shall submit to Congress a quarterly report on trade 
between the United States and nonmarket economy countries and 
instrumentalities of such countries. Such report shall include a review 
of the status of negotiations of bilateral trade agreements between 
the United States and such countries under this title, the activities of 
joint trade commissions created pursuant to such agreements, the reso- 
lution of commercial disputes between the United States and such 
countries, any exports from such countries which have caused disrup- 
tion of United States markets, and recommendations for the promo- 
tion of east-we^t trade in the national interest of the United States. 

TITLE V— GENERALIZED SYSTEM OF PREFERENCES 

Sec. 501. Authority to Extend Preferences. 

The President may provide duty-free treatment for any eligible 
article from any beneficiary developing country in accordance with 
the provisions of this title. In taking any such action, the President 
shall have due regard for — 

(1) the effect such action will have on furthering the economic 
development of developing countries ; 

(2) the extent to which other major developed countries are 
undertaking a comparable effort to assist developing countries by 
granting generalized preferences with respect to imports of prod- 
ucts of such countries ; and 

(3) the anticipated impact of such action on United States 
producers of like or directly competitive products. 

Sec. 502. Beneficiary Developing Country. 

(a) (1) For purposes of this title, the term "beneficiary developing 
country" means any country with respect to which there is in effect 
an Executive order by the President of the United States designating 
such country as a beneficiary developing country for purposes of this 
title. Before the President designates any country as a beneficiary 
developing country for purposes of this title, he shall notify the House 
of Representatives and the Senate of his intention to make such desig- 
nation, together with the considerations entering into such decision. 

(2) If the President has designated any country as a beneficiary 
developing country for purposes of this title, he shall not terminate 
such designation (either by issuing an Executive order for that pur- 
pose or by issuing an Executive order which has the effect of terminat- 
ing such designation) unless, at least 60 days before such termination, 
he has notified the House of Representatives and the Senate and has 
notified such country of his intention to terminate such designation, 
together with the considerations entering into such decision. 

(3) For purposes of this title, the term "country" means any for- 
eign country, any overseas dependent territory or possession of a for- 



72 

eign country, or the Trust Territory of the Pacific Islands. In the 
case of an association of countries which is a free trade area or customs 
union, the President may by Executive order provide that all members 
of such association other than members which are barred from desig- 
nation under subsection (b) shall be treated as one country for pur- 
poses of this title. 

(b) No designation shall be made under this section with respect to 
any of the following : 

Australia Japan 

Austria Monaco 

Canada New Zealand 

Czechoslovakia Norway 

European Economic Com- Poland 

munity member states Republic of South Africa 

Finland Sweden 

Germany (East) Switzerland 

Hungary Union of Soviet Socialist 
Iceland Republics 

In addition, the President shall not designate any country a beneficiary 
developing country under this section — 

(1) if such country is a Communist country, unless (A) the 
products of such country receive nondiscriminatory treatment, 
(B) such country is a contracting party to the General Agreement 
on Tariffs and Trade and a member of the International Mone- 
tSLTj Fund, and (C) such country is not dominated or controlled 
by international communism; 

(2) if such country is a member of the Organization of Petro- 
leum Exporting Countries, or a party to any other arrangement 
of foreign countries, and such country participates in any action 
pursuant to such arrangement the effect of which is to withhold 
supplies of vital commodity resources from international trade 
or to raise the price of such commodities to an unreasonable level 
and to cause serious disruption of the world econoj^y ; withhold 
supplies of vital commodity resources from international trade or 
to raise the price of such commodities to an unreasonable level 
which causes serious disruptions of the world economy ; 

(3) if such country affords preferential treatment to the prod- 
ucts of a developed country, other than the United States, which 
has, or is likely to have, a significant adverse effect on United 
States commerce, unless the President has received assurances sat- 
isfactory to him that such preferential treatment will be elimi- 
nated before January 1, 1976, or that action will be taken before 
January 1, 1976, to assure that there will be no such significant 
adverse effect, and he reports those assurances to the Congress ; 

(4) if such country — 

(A) has nationalized, expropriated, or otherwise seized 
ownership or control of property owned by a United States 
citizen or by a corporation, partnership, or association which 
is 50 percent or more beneficially owned by United States 
citizens, 

(B) has taken steps to repudiate or nullify an existing 
contract or agreement with a United States citizen or a cor- 
poration, partnership, or association which is 50 percent or 



73 

more beneficially owned by United States citizens, the effect 
of which is to nationalize, expropriate, or otherwise seize own- 
ership or control of property so owned, or 

(C) has imposed or enforced taxes or other exactions, 
restrictive maintenance or operational conditions, or other 
measures with respect to property so owned, the effect of 
which is to nationalize, expropriate, or otherwise seize owner- 
ship or control of such property, 

unless — 

(D) the President determines that — 

(i) prompt, adequate, and effective compensation has 
been or is being made to such citizen, corporation, part- 
nership, or association, 

(ii) good faith negotiations to provide prompt^ ade- 
quate, and effective compensation under the applicable 
provisions of international law are in progress, or such 
country is otherwise taking steps to discharge its obliga- 
tions under international law with respect to such citizen, 
corporation, partnership, or association, or 

(lii) a dispute involving such citizen, corporation, 
partnership, or association over compensation for such a 
seizure has been submitted to arbitration under the pro- 
visions of the Convention for the Settlement of Invest- 
ment Disputes, or in another mutually agreed upon 
forum, and 
promptly furnishes a copy of such determination to the Senate 
and House of Representatives; 

(5) if such country does not take adequate steps to cooperate 
with the United States to prevent narcotic drugs and other con- 
trolled substances (as listed in the schedules in section 202 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 
(21 U.S.C. 812)) produced, processed, or transported in such 
country from entering tlie Ignited States nnlaAvfully; 

(6) if such country fails to act in good faith in recognizing as 
binding or in enforcing arbitral awards in favor of United States 
citizens or a corporation, partnership or association which is 50 
percent or more beneficially owned by United States citizens, which 
have been made by arbitrators appointed for each case or by 
permanent arbitral bodies to which the parties involved have sub- 
mitted their dispute ; and 

(7)2^ if such country aids or abets, by granting sanctuary from 
prosecution to, any individual or group which has committed an 
act of international terrorism. 
Paragraphs (4). (5), (6), and (7) shall not prevent the designation 
of any country as a beneficiary developinsf country under this section 
if the President determines that such designation will be in the na- 
tional ecoTiomic interest of the T"^nited States and reports such deter- 
mination to the Conrrress with his reasons therefor. 

(c) In determining whether to designate any country a beneficiary 
developing country under this section, the President shall take into 
account — 

(1) an expression by such country of its desire to be so 
designated ; 



i^Paraprraph (7) was addM bv Sec 1802 of Public Law 94-455 (90 Stat. 17fi3V 



20-594 O - 78 - 6 



74 

(2) the level of economic development of such country, includ- 
ing its per capita gross national product, the living standards of 
its inhabitants, and any other economic factors which he deems 
appropriate ; 

(3) whether or not the other major developed countries are 
extending generalized preferential tariff treatment to such coun- 
try; and 

(4) the extent to which such country has assured the United 
States it will provide equitable and reasonable access to the mar- 
kets and basic commodity resources of such country. 

(d) General headnote 3(a) to the Tariff Schedules of the United 
States (19 U.S.C. 1202) (relating to products of insular possessions)' 
is amended by adding at the end thereof the following new paragraph : 

"(iii) Subject to the limitations imposed under sections 503(b) 
and 504(c) of the Trade Act of 1974, articles designated eligible 
articles under section 503 of such Act which are imported from 
an insular possession of the United States shall receive duty treat- 
ment no less favorable than the treatment afforded such articles 
imported from a beneficiary developing country under title V 
of such Act." 

(e) The President may exempt from the application of paragraph 
(2) of subsection (b) any country during the period during which 
such country (A) is a party to a bilateral or multilateral trade agree- 
ment to which the United States is also a party if such agreement 
fulfills the negotiating objectives set forth in section 108 of assuring 
the United States fair and equitable access at reasonable prices to 
supplies of articles of commerce important to the economic require- 
ments of the United States and (B) is not in violation of such 
agreement by action denying the United States such fair and equitable 
access. 

Sec. 503. Eligible Articles. 

(a) The President shall, from time to time, publish and furnish 
the International Trade Commission with lists of articles which may 
be considered for designation as eligible articles for purposes of this 
title. Before any such list is furnished to the Commission, there shall 
be in effect an Executive order under section 502 designating benefi- 
ciary developing countries. The provisions of sections 131, 132, 133, 
and 134 of this Act shall be complied with as though action under 
section 501 were action under section 101 of this Act to carry out a 
trade agreement entered into under section 101. After receiving the 
advice of the Commission with respect to the listed articles, the Presi- 
dent shall designate those articles he considers appropriate to be 
eligible articles for purposes of this title by Executive order. 

(b) The duty-free treatment provided under section 501 with 
respect to any eligible article shall apply only— 

(1) to an article which is imported directly from a beneficiary 
developing country into the customs territory of the United 
states; and 

(2) (A) if the sum of (i) the cost or value of the materials pro- 
duced in the beneficiary developing country plus (ii) the direct 
costs of processing operations performed in such beneficiary de- 
veloping country is not less than 35 percent of the appraised value 
of such article at the time of its entry into the customs territory of 
the United States; or 



75 

(B) if the sum of (i) the cost or value of the materials pro- 
duced in 2 or more countries which are members of the same asso- 
ciation of countries which is treated as one country under section 
502(a) (3), plus (ii) the direct costs of processing operations per- 
formed in such countries is not less than 50 percent of the 
appraised value of such article at the time of its entry into 
the customs territory of the United States. 
For purposes of paragraph (2) (A), the term "country" docs not 
include an association of countries which is treated as one country 
under section 502(a) (3) but does include a country which is a member 
of any such association. The Secretary of the Treasury shall prescribe 
such regulations as may be necessary to carry out this subsection, 
(c) (1) The President may not designate any article as an eligible 
article under subsection (a) if such article is within one of the follow- 
ing categories of import-sensitive articles — 

(A) textile and apparel articles which are subject to textile 
agreements, 

(B) watches, 

(C) import-sensitive electronic articles, 

(D) import-sensitive steel articles, 

(E) footwear articles specified in items 700.05 through 700.27, 
700.29 through 700.53, 700.55.23 through 700.55.75, and 700.60 
through 700.80 of the Tariff Schedules of the United States, 

(F) import-sensitive semimanufactured and manufactured 
glass products, and 

(G) any other articles which the President determines to be 
import-sensitive in the context of the Generalized System of 
Preferences. 

(2) No article shall be an eligible article for purposes of this title 
for any period during which such article is the subject of any action 
proclaimed pursuant to section 203 of this Act or section 232 or 351 of 
the Trade Expansion Act of 1962. 

Sec. 504. Limitations on Preferential Treatment. 

(a) The President may withdraw, suspend, or limit the application 
of the duty-free treatment accorded under section 501 with respect to 
any article or with respect to any country; except that no rate of 
duty may be established in respect of any article pursuant to this 
section other than the rate which would apply but for this title. In 
taking any action under this subsection, the President shall consider 
the factors set forth in sections 501 and 502 (c) . 

(b) The President shall, after complying with the requirements of 
section 502(a) (2) , withdraw or suspend the designation of any country 
as a beneficiary developing country if, after such designation, he 
determines that as the result of changed circumstances such country 
would be barred from designation as a beneficiary developing coimtry 
under section 502(b). Such country shall cease to be a beneficiary 
developing country on the day on which the President issues an 
Executive order revoking his designation of such country under 
section 502. 

(c) (1) Whenever the President determines that any country — 

(A) has exported (directly or indirectly) to the United States 
during a calendar year a quantity of an eligible article having an 
appraised value in excess of an amount which bears the same ratio 
to $25,000,000 as the gross national product of the United States 



76 

for the preceding calendar year, as determined by the Depart- 
ment of Commerce, bears to the gross national product of the 
United States for calendar year 1974, or 

(B) except as provided in subsection (d), has exported (either 
directly or indirectly) to the United States a quantity of any 
eligible article equal to or exceeding 50 percent of the appraised 
value of the total imports of such article into the United States 
during any calendar year, 
then, not later than 60 days after the close of such calendar year, such 
country shall not be treated as a beneficiary developing country with 
respect to such article, except that, if before such bOth day, the Presi- 
dent determines and publishes in the Federal Register that, with re- 
spect to such country — 

(i) there has been an historical preferential trade relationship 
between the United States and such country, 

(ii) there is a treaty or trade agreement in force covering eco- 
nomic relations between such country and the United States, and 
^ (iii) such country does not discriminate against, or impose un- 
justifiable or unreasonable barriers to. United States commerce, 
then he may designate, or continue the designation of, such country as 
a beneficiary developing country with respect to such article. 

(2) A country which is no longer treated as a beneficiary developing 
country with respect to an eligible article by reason of this subsection 
may be redesignated, subject to the provisions of section 502, a benefi- 
ciary developing country with respect to such article if imports of such 
article from such country did not exceed the limitations in paragraph 
(1) of this subsection during the preceding calendar year. 

(d) Subsection (c)(1)(B) does not apply with respect to any eligi- 
ble article if a like or directly competitive article is not produced on 
the date of enactment of this Act in the United States. 

(e) No action pursuant to section 501 may affect any tariff duty 
imposed bv the Legislature of Puerto Rico pursuant to section 319 of 
the Tariff' Act of 1930 (19 U.S.C. sec. 1319) on coffee imported into 
Puerto Rico. 

Sec. 505. Time Limit on Title; Comprehensive Review. 

(a) No duty-free treatment under this title shall remain in effect 
after the date which is 10 years after the date of the enactment of this 
Act. 

(b) On or before the date which is 5 years after the date of the en- 
actment of this Act, the President shall submit to the Congress a full 
and complete report of the operation of this title. 

TITLE VI— GENERAL PROVISIONS 

Sec. 601. Definitions. 

For purposes of this Act — 

(1) The term "duty" includes the rate and form of any import 
duty, including but not limited to tariff-rate quotas. 

(2) The term "other import restriction" includes a limitation, 
prohibition, charge, and exaction other than duty, imposed on 
importation or imposed for the regulation of importation. The 
term does not include any orderly marketing agreement. 



77 

(3) The term '^ad valorem" includes ad valorem equivalent. 
Whenever any limitation on the amount by which or to which any 
rate of duty may be decreased or increased pursuant to a trade 
agreement is expressed in terms of an ad valorem percentap^e, the 
ad valorem amount taken into account for purposes of such 
limitation shall be determined by the President on the basis of 
the value of imports of the articles concerned during the most 
recent representative period. 

(4) The term "ad valorem equivalent" means the ad valorem 
equivalent of a specific rate or, in the case of a combination of 
rates including a specific rate, the sum of the ad valorem equiva- 
lent of the specific rate and of the ad valorem rate. The ad 
valorem equivalent shall be determined by the President on the 
basis of the value of imports of the article concerned during the 
most recent representative period. In determining the value of 
imports, the President shall utilize, to the maximum extent 
practicable, the standards of valuation contained in section 402 
or 4q2a of the Tariff Act of 1930 (19 U.S.C. sec. 1401a or 1402) 
applicable to the article concerned during such representative 
period. 

(5) An imported article is "directly competitive with" a domes- 
tic article at an earlier or later stage of processing, and a domestic 
article is "directly competitive with" an imported article at an 
earlier or later stage of processing, if the importation of the 
article has an economic effect on producers of the domestic article 
comparable to the effect of importation of articles in the same 
stage of processing as the domestic article. For purposes of this 
paragraph, the unprocessed article is at an earlier stage of 
processing. 

(6) The term "modification", as applied to any duty or other 
import restriction, includes the elimination of any duty or other 
import restriction. 

(7) The term "existing" means (A) when used, without the 
specification of any date, with respect to any matter relating to 
entering into or carrying out a trade agreement or other action 
authorized by this Act, existing on the day on which such trade 
agreement is entered into or such other action is taken; and (B) 
when used with respect to a rate of duty, the nonpreferential rate 
of duty (however established, and even though temporarily sus- 
pended by Act of Congress or otherwise) set forth in rate column 
numbered 1 of schedules 1 through 7 of the Tariff Schedules of 
the United States on the date specified or (if no date is specified) 
on the day referred to in clause ( A) . 

(8) A product of a country or area is an article which is the 
growth, produce, or manufacture of such country or area. 

(9) The term "nondiscriminatory treatment" means most- 
favored-nation treatment. 

(10) The term "commerce" includes services associated with 
international trade. 

Sec. 602. Relation to Other Laws. [Subsections (a) through (e) 
amend the Tariff Act of 1930 and the Trade Expansion Act of 



78 

(f ) All provisions of law (other than this Act, the Trade Expansion 
Act of 1962, and the Trade Agreements Extension Act of 1951) in 
effect after the date of enactment of this Act, referring to section 350 
of the Tariff Act of 1980, to that section as amended, to the Act entitled 
"An Act to amend the Tariff Act of 1930," approved June 12, 1934, to 
that Act as amended or to the Trade Expansion Act of 1962, or to 
agreements entered into, or proclamations issued, or actions taken 
under any of such provisions, shall be construed, unless clearly pre- 
cluded by the context, to refer also to this Act, or to agreements entered 
into or proclamations or orders issued, pursuant to this Act. 

Sec. 603. International Trade Commission. 

(a) In order to expedite the performance of its functions under this 
Act, the International Trade Commission may conduct })reliminary 
investigations, determine the scope and manner of its proceedings, and 
consolidate proceedings before it. 

(b) In performing its functions under this Act, the Commission 
may exercise any autliority granted to it under any other Act. 

(c) The Commission shall at all times keep informed concerning the 
operation and eJFcct of ])rovisions relating to duties or other import 
restrictions of the United States contained in trade agreements entered 
into under the trade agreements program. 

Sec. 604. Consequential Changes in the Tariff Schedules. 

The President shall from time to time, as appropriate, embody in 
the Tariff Schedules of the United States the substance of the relevant 
provisions of this Act, and of other Acts affecting import treatment, 
and actions thereunder, including modification, continuance, or 
imposition of any rate of duty or other import restriction. 

Sec. 605. Separability. 

If any provision of this Act or the application of any provision 
to any circumstances or persons shall be held invalid, the validity of 
the remainder of this Act, and of the application of such provision 
to other circumstances or persons, shall not be affected thereby. 

Sec. 606. International Drug Control. 

The President shall submit a report to Congress at least once each 
calendar year listing those foreign countries in which nai-cotic drugs 
and other controlled substances (as listed undci- section 202 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 812) ) are produced, pi'ocessed, or transported for unlawful 
entry into the United States. Such report shall include a descrip- 
tion of the measures such countries are taking to prevent such produc- 
tion, processing, or transport. 

Sec. 607. Voluntary Limitations on Exports of Steel to the United 
States. 

No person shall be liable for damages, penalties, or other sanctions 
under the Federal Trade Commission Act (15 U.S.C. 41-77) or the 
Antitrust Acts (as defined in section 4 of the Federal Trade Com- 
mission Act (15 U.S.C. 44)), or under any similar State law, on ac- 
count of his negotiating, entering, into, participating in, or imple- 
menting an arrangement providing for tlic voluntary limitation on 



79 

exports of steel and steel products to the United States, or any modifi- 
cation or renewal of such an arrangement, if such arrangement or such 
modification or renewal — 

(1) was undertaken prior to the date of the enactment of this 
Act at the request of tlie Secretary of State* or his delegate, and 

(2) ceases to be eflfective not later than January 1, 1975. 

Sec. 608. Uniform Statistical Data on Imports, Exports, and 
Production. 

(a) Section 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)) 
is amended to read as follows : 

"(e) Statistical Enumeration. — The Secretary of the Treasury, 
the Secretary of Commerce, and the United States International Traae 
Commission are authorized and directed to establish from time to 
time for statistical purposes an enumeration of aiticlcs in such detail 
as in their judgment may be necessary, comprehending all merchan- 
dise imported into the United States and exported from the United 
States, and shall seek, in conjunction with statistical programs for 
domestic production, to establisli the comnarability thcieof with such 
enumeration of articles. All import entries and export declarations 
shall include or have attached thereto an accurate statement specify- 
ing, in terms of such detailed enumeration, the kinds and quantities 
of all merchandise imported and exported and the value of the total 
quantity of each kind of article." 

(b) In carrying out the responsibilities under section 484(e) , Tariff 
Act of 1930 and other pertinent statutes, the Secretary of Commerce 
and the United States International Trade Commission shall conduct 
jointly a study of existing commodity classification systems with a 
view to identifying the appropriate principles and concepts which 
should guide the organization and development of an enumeration 
of articles which would result in comparability of United States im- 
port, production, and export data. The Secretary and the United 
States International Trade Commission shall submit a report to both 
Houses of Congress and to the President with respect to such study 
no later than August 1, 1975. 

(c) In further connection with its responsibilities pursuant to sub- 
sections (a) and (b), the United States International Trade Commis- 
sion shall undertake an i n vest i prat ion under section 332(g) of the 
Tariff Act of 1930 -^ which would provide the basis for— 

(1) a report on the appropriate concepts and principles which 
should underlie the formulation of an mternational commodity 
code adaptable for modernized tariff nomenclature purposes and 
for recording, handling, and reporting of transactions in national 
and international trade, taking into account how such a code 
could meet the needs of sound customs and trade reporting prac- 
tices reflecting the interests of United States and other countries, 
such report to be submitted to botli Houses of Congress and to the 
President as soon as feasible, but in any event, no later than 
Junel, 1975: and 

(2) full and immediate participation by the United States 
International Trade Commission in the United States contribu- 

« in r.S.C. 1332. 



80 

tion to technical work of the Harmonized Systems Committee 
under the Customs Cooperation Council to assure the recognition 
of the needs of the United States business community in the de- 
velopment of a Harmonized Code reflecting sound principles of 
commodity identification and specification and modem producing 
methods and trading practices, 
and, in carrying out such responsibilities, the Commission shall report 
to both Houses of Congress and to the President, as it deems appro- 
priate. 

(d) The President is requested to direct the appropriate agencies 
to cooperate fully with the Secretary of Commerce and the United 
States International Trade Commission in carrying out their responsi- 
bilities under subsections (a), (b),and (c). 

(e) The amendment made by subsection (a) insofar as it relates to 
export declarations shall take effect on January 1, 1976. 

Sec. 609. Submission of Statistical Data on Imports and Exports. 

(a) Section 301 of title 13, United States Code, is amended — 

( 1 ) by inserting " (a) " before "The Secretary" ; and 

(2) by adding at the end thereof the following new subsections : 
"(b) The Secretary shall submit to the Committee on Ways and 

Means of the House of Representatives and the Committee on Finance 
of the Senate, on quarterly and cumulative bases, statistics on United 
States imports for consumption and United States exports by country 
and by product. Statistics on United States imports shall be submitted 
in accordance with the Tariff Schedules of the United States Annotated 
and general statistical headnote 1 thereof, in detail as follows : 
"(1) net quantity; 
" (2 J United States customs value ; 
" ( 3) purchase price or its equivalent ; 
" (4) equivalent of arm's length value ; 

"(5) aggregate cost from port of exportation to United States 
port of entry ; 

"(6) a United States port of entry value comprised of (5) 

plus (4), if applicable, or, if not applicable, (5) plus (3) ; and 

"(7) for transactions where (3) and (4) are equal, the total 

value of such transactions. 

The data for paragraphs (1), (2), (3), (5), and (6) shall be reported 

separately for nonrelated and related party transactions, and shall 

also be reported as a total of all transactions. 

"(c) In submitting any information under subsection (b) with 
respect to exports, the Secretary shall state separately from the total 
value of all exports — 

"(1) (A) the value of agricultural commodities exported under 
the Agricultural Trade Development and Assistance Act of^l954, 
as amended ; and 

"(B) the total amount of all export subsidies paid to exporters 
by the United States under such Act for the exportation of such 
commodities; and 

" (2) the value of goods exported under the Foreign Assistance 
Act of 1961. 
"(d) To assist the Secretary to carry out the provisions of sub- 
sections (b) and (c) — 



81 

"(1) the Secretary of Agriculture shall furnish information to 
the Secretary conceminpj the vahic of apjricultural commodities 
exported under provisions of the Agricultural Trade Develop- 
ment and Assistance Act of 1954, as amended, and the total 
amounts of all export subsidies paid to exporters by the United 
States under such Act for the exportation of such commodities ; 
and 

"(2) the Secretary of State shall furnish information to the 
Secretary concerning the value of poods exported under the pro- 
visions of the Foreign Assistance Act of 1961, as amended." 
(b) Tlie amendments made by subsection (a) shall take effect on 
January 1, 1976. 

Sec 610. Gifts Sent from Insular Possessions. 

(a) Section 321(a)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 
1321(a)(2)(A)) is amended by inserting after "United States" the 
following: "($20, in the case of articles sent as bona fide gifts from 
persons m the Virgin Islands, Guam, and American Samoa) . 

(b) The amendment made hj subsection (a) shall apply with 
respect to articles entered, or withdrawn from warehouse, for con- 
sumption after the date of the enactment of this Act. 

Sec. 611. Review of Protests in Import Surcharge Cases. 

Notwithstanding the provisions of section 515(a) of the Tariff Act 
of 1930 (19 U.S.C. 1515(a)), in the case of any protest under section 
514 of such Act involving the imposition of an import surcharge in the 
form of a supplemental duty pursuant to Presiaential Proclamation 
4074, dated August 17, 1971, the time for review and allowing or 
denying the protest shall not expire until five years from the date 
the protest was filed in accordance with such section 514. 

Sec. 612. Trade Relations With Canada. 

It is the sense of the Congress that the United States should enter 
into a trade agreement with Canada which will guarantee continued 
stability to the economies of the United States and Canada. In order 
to promote such economic stability, the President may initiate negotia- 
tions for a trade agreement with Canada to establish a free trade area 
covering the United States and Canada. Nothing in this section shall 
be construed as prior approval of any legislation which may be neces- 
sary to implement such a trade agreement. 

Sec. 613. Limitation on Credit to Russia. 

After the date of enactment of the Trade Act of 1974, no agency of 
the Government of the United States, other than the Commodity 
Credit Corporation, shall approve any loans, guarantees, insurance, or 
any combination thereof, in connection with exports to the Union of 
Soviet Socialist Republics in an aggregate amount in excess of 
$300,000,000 without prior congressional approval as provided by law. 



b. Executive Order 11888, November 24, 1975, 40 F.R. 55276^ 
Implementing the Generalized System of Preferences 

The Trade Act of 1974 authorizes the establishment of a Generalized 
System of Preferences for eligible articles imported from beneficiary 
developing countries. 

The President has designated and may, by Executive order, desig- 
nate certain countries as beneficiary developing countries, after having 
determined that such designations are in accordance with the provi- 
sions of the Trade Act of 1974 and after having provided the necessary 
information to the Congress, pursuant to Section 502 of the Trade 
Act of 1974. The necessary determinations have been made and the 
appropriate information has been furnished the Congress. 

The President may, by Executive order, designate articles eligible 
for duty-free treatment after receiving advice from appropriate 
agencies, public comment, and the advice of the International Trade 
Commission. That advice has been received, as requested, by reference 
to item numbers, and statistical divisions thereof, contained in the 
Tariff Schedules of the United States, hereinafter sometimes referred 
to as TSUS. 

Since not every article within the group represented by an item 
number of the Tariff Schedules of the United States is eligible for 
duty-free treatment under a Generalized System of Preferences, it is 
necessary to subdivide some of the existing item numbers. 

In order to implement the Generalized System of Preferences and 
to remove expired provisions of the TSUS, relating to the Philippine 
Republic and the Trust Territory of the Pacific Islands, it is necessary 
to amend the Tariff Schedules of the United States, thus embodying 
the substance of relevant provisions of the Trade Act of 1974, and of 
actions taken thereunder, into the Tariff Schedules of the United 
States. 

Now, Therefore, by virtue of the authority vested in me by the 
Constitution and statutes of the United States of America, including 
Title V and Section 604 of the Trade Act of 1974 (88 Stat. 2066, 19 
U.S.C. 2461 et seq., 88 Stat. 2073, 19 U.S.C. 2483), and as President 
of the United States of America, in order to designate additional 
beneficiary developing countries and eligible articles, and to imple- 
ment a Generalized System of Preferences, it is hereby ordered as 
follows : 



1 Supersedes Executive Order 11844, March 24, 1975, 40 F.R. 13295. Annex I mentioned 
In this Executive Order may be found in 40 F.R. 55284. Further amendments to Annex I 
may be found in 41 F.R. 37086. Executive Order 11906. February 27. 1976, 41 F.R. 8758. 
amended Annexes II and III mentioned in the Executive Order. For the new text of 
Annex II, see 41 F.R. 8762 Annexes II and III were further amended by Executive Order 
11934. August 30. 1976, 41 F.R. 37084, Executive Order 11960. January 19. 1977. 42 F.R. 
4317 (subsequently revoked on February 2r>. 1977). Executive Order 11974. February 
25. 1977, 42 F.R. 11230A. and Executive Order 12032, Dec. 27, 1977, 42 F.R. 64851. 
For new text of Annex III, see 42 F.R. 11230G. Executive Order 11906 provided 
that the provisions in that Order "shall become effective with respect to articles 
that are entered for consumption, or withdrawn from warehouse for consumntion, 
on or after February 29, 1976." The amendments made to Annexes I, II, and III by 
Executive Order 11934 became effective "with respect to articles both : imported on or 
after January 1, 1976. and entered for consumption, or withdrawn from warehouse for 
consumption, on or after October 1. 1976." Executive Order 11974 provided that amend- 
ments made by it shall be effective "with re«pect to articles both : (1) imported on or 
after January 1, 1976, and (2) entered, or withdrawn from Avarehonse, for consumption 
on or after March 1. 1977." Executive Order 12032 provided that amendments made 
by it shall be effective "with respect to articles that are both : (1) imported on or after 
January 1, 1976, and (2) entered or withdrawn from warehouse for consumption, on or 
after January 1, 1978." 

(82) 



83 



Section 1. The following expired headnotes and items for the 
products of the Philippine Republic and of the Trust Territory of the 
Pacific Islands are deleted from the Tariff Schedules of the United 
States : 

Headnotes : 
General headnote 3(c) ; 
Headnotes 3 and and 4, part 13, schedule 1 ; 
Headnotes 1, 2, and 3, part 14, schedule 1 ; 
Headnote 2, subpart B, part 14, schedule 1 ; 
Headnote 2, part 2, schedule 3 ; and 
Headnote 3, subpart A, part 7, schedule 7. 



T8U8 items: 








170.22 


170.37 


170.68 


176.07 


170.23 


170.42 


170.70 


176.08 


170.24 


170.43 


170.74 


176.09 


170.26 


170.44 


170.75 


176.10 


170.27 


170.47 


170.76 


176.11 


170.29 


170.48 


175.10 


176.12 


170.31 


170.49 


175.11 


176.13 


170.33 


170.62 


175.12 


745.21 


170.34 


170.63 


176.05 


746.22 


170.30 


170.64 


176.06 





I 



Sec. 2. The article descriptions, including superior headings, for 
TSUS items 175.09 and 176.04 are amended to read, respectively, 
"Copra" and "Coconut Oil". 

Sec. 3. A column entitled "GSP" is added to the left of, and adjacent 
to, the column entitled "Item" on each page of schedules 1 through 7 of 
the TSUS. The designations "A" or "A*", as specified in general head- 
note 3(c) (ii) of the TSUS, as added by Section 9 of this Order, shall 
be placed in the column entitled "GSP" opposite the TSUS item 
number of each article which has been designated as an eligible article 
for purposes of the Generalized System of Preferences. 

Sec. 4. In order to subdivide existing items for purposes of the Gen- 
eralized System of Preferences, the Tariff Schedules of the United 
States are amended as provided in Annex I, attached hereto and made 
a part hereof. 

Sec. 5. The articles, identified by item numbers of the Tariff Sched- 
ules of the United States, as modified by this Order, set forth in 
Annex II and Annex III,^ attached hereto and made a part hereof, 
are designated, pursuant to Section 503 of the Trade Act of 1974 (88 
Stat. 2069, 19 U.S.C. 2463), as eligible articles for purposes of the 
Generalized System of Preferences, and shall be given duty-free treat- 
ment as set forth in General Headnote 3(c) of the TSUS, as added 
by Section 9 of this Order. 

Sec. 6. The designation "A" shall be inserted in the column entitled 
*;GSP" of the TSUS, as modified by this Order, opposite the TSUS 
item numbers set forth in Annex II of this Order. 

Sec. 7. The designation "A*" shall be inserted in the column entitled 
"GSP" of the TSUS, as modified by this Order, opposite the TSUS 
item numbers set forth in Annex III of this Order. 

Sec. 8. The countries set forth in General Headnote 3(c) (i) of the 
TSUS, as added by Section 9 of this Order, are hereby designated as 
beneficiary developing countries. 

Sec. 9. A new General Headnote 3(c) of the TSUS is hereby added 
as follows : 



2 See footnote 1 for citations to Annexes II and III In the Federal Register. 



84 



"(c) Products of Countries Designated Beneficiary Developing Countries for 
Purposes of the Generalized System of Preferences {08P) : 

"(i)^ The following countries and territories are designated beneficiary 
developing countries for purposes of the Generalized System of Preferences, 
provided for in Title V of the Trade Act of 1974 (88 Stat. 206G. 19 U.S.C. 
2461 etseq.): 

"(a) Independent Countries 



Afghanistan 

Angola 

Argentina 

Bahamas 

Bahrain 

Bangladesh 

Barbados 

Benin 

Bhutan 

Bolivia 

Botswana 

Brazil 

Burma 

Burundi 

Cameroon 

Cape Verde 

Central African Republic 

Chad 

Chile 

Colombia 

Congo (Brazzaville) 

Costa Rica 

Cyprus 

Dominican Republic 

Egypt 

El Salvador 

Equatorial Guinea 

Ethiopia 

Fiji 

Gambia 

Ghana 

Grenada 

Guatemala 

Guinea 

Guinea Bissau 

Guyana 

Haiti 

FTonduras 

India 

Israel 

Ivory Coast 

Jamaica 

Jordan 

Kenya 

Korea, Republic of 

Lebanon 

Lesotho 

Liberia 

Malagasy Republic 



Malawi 

Malaysia 

Maldive Islands 

Mali 

Malta 

Mauritania 

Mauritius 

Mexico 

Morocco 

Mozambique 

Nauru 

Nepal 

Nicaragua 

Niger 

Oman 

I'akistan 

Panama 

Papua New Guinea 

Paraguay 

Peru 

Philippines 

Portugal 

Republic of China 

Romania 

Rwanda 

Sao Tome and Principe 

Senegal 

Sierra Leone 

Singapore 

Somalia 

Sri Lanka 

Sudan 

Surinam 

Swaziland 

Syria 

Tanzania 

Thailand 

Togo 

Tonga 

Trinidad and Tobago 

Tunisia 

Turkey 

Upper Volta 

Uruguay 

Western Samoa 

Yemen Arab Republic 

Yugoslavia 

Zaire 

Zambia 



3 General Headnote 3(c)(i) of the TSUS was amended by Sec. 5 of Executive Order 
11934. August 30. 1976, 41 F.R. 37084. 



85 



(b) Non-independent Countries and Territories 



Afars and Issas, French Territory of 

the Antigua 
Belize 
Boimuda 

British Indian Ocean Territory 
British Solomon Islands 
Brunei 

Cayman Islands 
Christmas Island (Australia) 
Cocos (Keeling) Islands 
Comora Islands 
Cook Islands 
Dominica 
Falkland Islands (Malvinas) and 

Dependencies 
French Polynesia 
Gibraltar 
Gilbert Islands 

Heard Island and McDonald Islands 
Hong Kong 
Macao 



Montserrat 

Netherlands Antilles 

New Caledonia 

New Hebrides Condominium 

Nine 

Norfolk Island 

Pitcairn Island 

Portuguese Timor 

Saint Christopher-Nevis-Anguilla 

Saint Helena 

Saint Lucia 

Saint Vincent 

Seychelles 

Spanish Sahara 

Tokelau Islands 

Trust Territory of the Pacific Islands 

Turks and Caicos Islands 

Tuvalu 

Virgin Islands, British 

Wallis and Futuna Islands 



"(il) Articles for which the designations "A" or "A*" appear In the 
column entitled "GSP" of the sche<lules are those designated by the Presi- 
dent to be eligible articles for purposes of the GSP pursuant to Section 503 of 
the Trade Act. The designation "A" signifies that all beneficiary developing 
countries are eligible for preferential treatment with resepect to all articles 
provided for in the designated TSUS item, while the designation "A*" indi- 
cates that certain beneficiary developing countries, specifically enumerated 
in subdivision (c) (iii) of this headnote, are not eligible for such preferential 
treatment with regard to any article provided for in the designated TSUS 
item. Whenever an eligible article is imported into the customs territory of 
the United States directly from a country or territory listed in subdivision 
(c) (i) of this headnote, it shall receive duty-free tratment, unless excluded 
from such treatment by subdivision (c) (iii) of this headnote, provided that, 
in accordance with regulations promulgated by the Secretary of the Treas- 
ury : 

"(A) The sum of (1) the cost or value of the materials produced in 
the beneficiary developing country, plus (2) the direct costs of processing 
operations performed in such country is not less than 35 percent of the 
appraised value of such article at the time of its entry into the customs 
territory of the United States ; or 

(B) The sum of (1) the cost or value of the material produced in two 
or more beneficiary developing countries which are members of the same 
association of countries which is treated as one country under Section 
502(a) (3) of the Trade Act, plus (2) the direct cost of processing op- 
erations performed In such countries Is not less than 50 percent of the 
appraised value of such article at the time of Its entry into the customs 
territory of the United States; 
"and provided further that, for the purpose of (A) above, the term "coun- 
try" does not include an association of countries which is treated as one 
country under Section 502(a) (3) of the Trade Act, but does Include a coun- 
try which is a member of any such association. 



86 



'*(iii)^ The followinor desi^ated eligible articles provided for in 
TSUS item numbers preceded by the designation "A*", if imported 
from a beneficiary developing country set opposite the TSUS item 
numbers listed below, are not entitled to the duty-free treatment 
provided for in subdivision (c) (ii) of this headnote : 

''TSUS item number — country or territory 



106.60— India 

107.20 — Argentina 

107.45— Brazil 

107.48 — Argentina. Brazil 

107.70— Haiti 

110.45 — Argentina 

111.92— Philippine RepiibUe 

121.52— India 

121.55 — India 

130.35— Brazil 

130.40— Mexico 

130.63— Mexico 

131.35— Hong Kong 

132.55— Mexico 

135.30— Mexico 

135.51— Mexico 

135.80— Nicaragua 

135.90— Mexico 

136.00 — Dominican Republic 

136.80— Mexico 

136.98— Dominican Republic 

136.99— Republic of China 

137.71— Mexico 

137.75— Costa Rica 

138.05— Mexico 

140.09— Thailand 

140.10— Chile 

140.14— Thailand 

140.20— Kenya 

140.21— Mexico 

140.25— Peru 

140.35— Turkey 

141.35— Turkey 

141.55 — Dominican Republic 

141.70— Republic of China 

141.77 — Mexico 

145.09 — Dominican Republic 

145.52 — Portugal 

145.53— Turkey 

145.60— Republic of China 

146.12 — Argentina 

146.22— Turkey 

146.44 — Philippine Republic 

147.33 — Jamaica 

147.36— Republic of China ^ 

147.80 — Philippine Republic 

147.85— Brazil 

148.72— Chile 

148.77 — Republic of Korea 

149.15 — Dominican Republic 

149.50— Chile 

152.43 — Dominican Republic 

152.5.^-Brazil 

152.72 — Honduras 



153.02 — Dominicjin Republic 

153.28— Portugal 

154.40— Republic of China 

155.20 — Argentina. Brazil. Republic of 
China, Colombia. Dominican Republic. 
El Salvador. Guatemala. Guyana, 
India. .lamaica. Nicaragua. Pan- 
ama. Peru. Philippine Republic, 
and Thailand 

155.35 — Barbados 

156.35 — Ivory Coast 

156.45 — Dominican Republic 

161.15— Republic of China 

161.53— Syria 

161.69— Mexico 

16(1.40— Mexico 

168.15— Trinidad 

176.15— Brazil 

176.33— Malaysia 

184.65— Republic of China 

186.40— Mexico 

192.85— Mexico 

200.91— Honduras 

202.62— Mexico 

203.20— Costa Rica 

206.47— Republic of China 

206.60— Mexico 

206.98— Republic of China 

220.10— Portugal 

220.1.5— Portugal 

220.20— Portugal 

220.25— Portugal 

220.35— Portugal 

220.37— Portugal 

220.41— Portugal 

220.48— Portugal 

220. .50— Portugal 

222.10— Hong Kong 

222.34 — Philippine Republic 

222.62 Philippine Repubhc 

240.02— PhiUppine RepubUc 

240.10 — Panama 

240.12 — Republic of Korea 

240.38— Philippine RepubUc 

256.60— Republic of Korea 

256.80— Mexico 

256.85— Mexico 

274.00— Mexico 

304.04— PhiUppine RepubUc 

304.40— Thailand 

304.4^-Brazil 

304.58— India 

305.20— India 

305.22— India 



* General Headnote 3(c) (iii), as added by this Executive Order, was amended by Sec. 1 
of Executive Order 11906, February 27, 1976, 41 F.R. S75S. Further amended by Executive 
Order 11934. August 30, 1976. 41 F.R. 37084. Executive Order 11960. January 19. 1977. 
42 F.R. 4317, Executive Order 11974. February 25. 1977, 42 F.R. 11230A. and Executive 
Order 12032. December 27. 1977, 42 F.R. 64853. 



87 



'T8U8 item number — country or territory — Continued 



305.28— India 

305.80— Republic of C'hiua 

305.40— Philippine Republic 

308.52— Peru 

308.30— Republic of Korea 

316.50 — Philippine Republic 

319.01— India 

319.03— India 

319.05— India 

319.07— India 

335.50— India 

347.30— India 

355.(M— Mexico 

360.35— India 

360.82— Hong Kong 

370.17— Portugal 

407.08 — Dominican Republic 

407.12 — Romania 

408.40— Mexico 

417.90— Malaysia 

418.78— Chile 

418.80— Mexico 

420.82— Israel 

422.76— Mexico 

425.00— Republic of China 

425.84 — Netherlands Antilles 

425.86— Brazil 

426.46— Mexico 

437.16— India 

437.04- Brazil 

460.35— Republic of China 

460.60— India 

461.05— Israel 

461.15 — Bermuda 

465.70 — Argentina 

473.46— Mexico 

473.48— Mexico 

473.52— Mexico 

473.56— ^lexieo 

473.58— Mexico 

473.62— Mexico 

473.66— Mexico 

490.44— Hong Kong 

493.21— Republic of China 

493.82— Mexico 

494.40— Cayman 

511.31— Mexico 

511.51 — Syria 

512.44 — Mexico 

513.84— Republic of China 

514.11 — Dominican Republic 

514.54 — :Mexico 

516.11— India 

516.24— India 

516.71 — India 

516.73— India 

516.74 — India 

516.76— India 

516.JM — India 

517.24 — Malagasy Republic 

51841— :Mexico 

520.35— Thailand 

520.51— Brazil 

533.26— Romania 

53f>.31 — Mexico 



540.21— Mexico 

540.47 — Mexico 

544.11 — Republic of China 

545.31— Republic of China 

545.53 — Mexico 

545.65 — Mexico 

546.23— Republic of China 

603.45— Bolivia 

603.50— BotJ^wana 

605.66 — Singapore 

610.71 — Republic of Korea 

612.02— Mexico 

612.03— Chile 

612.06— Chile. Peru, Yugoslavia, Zambij 

612.15— Mexico 

612.70— Chile 

612.72— Chile 

620.08— Mexico 

622.20— Malaysia 

622.35— Hong Kong 

624.0-2— Mexico 

624.42— Mexico 

624.50— Republic of China 

626.42— Costa Rica 

628.05— Mexico 

628.10— Mexico 

628.40 — Singapore 

640.10— Mexico 

642.06— Hong Kong 

W6.04— Republic of China 

046.86 — Hong Kong 

646.98— Mexico 

649.39— Israel 

&49.71— Republic of China 

650.79— India 

650.83— Hong Kong 

650.87 — Hong Kong 

651.03— Hong Kong 

651.49— Republic of Korea 

652.50— Israel 

652.84 — Mexico 

653.02— Republic of Korea 

653.03— Mexico 

653.47 — Republic of Korea 

653.49— Republic of China 

653.85 — Republic of China 

653.93— Republic of China 

656.20— Hong Kong 

657.90— Mexico 

660.44— Mexico 

672.10— Hong Kong 

674.56— Mexico 

676.52-1 S^""^ ^""''^ 
1 Mexico 

678.50— Republic of China 

683.70— Hong Kong 

683.80— Hong Kong 

684.50— Hong Kong 

685.24— Republic of China. Hong Kong, 
Republic of Korea anrl Singa- 
pore 

685.28— Republic of China 

685.90— Mexico 

686.30— Republic of China 

687.30— Malaysia 

688.10— Republic of China 

688.12— Mexico 



88 



'T8US item number — country or territory— Continued 



688.40— Hong Kong 
692.27— Mexico 
696.35— Republic of China 
700.54r-Hong Kong 
702.08— Hong Kong 
702.20— Hong Kong 
702.45— Mexico 
703.65— Mexico 
703.75— Mexico 
704.34— Republic of China 
706.40— Hong Kong 
711.30— Republic of China 
713.07— Israel 
713.15— Mexico 
713.19— Mexico 
724.35— Hong Kong 
726.70— Mexico 
730.27— Brazil 
730.29— Brazil 
730.41— Brazil 
731.10— Republic of China 
734.10— RepubUc of China 
734.25— Hong Kong 
734.30— Hong Kong 
734.34— Hong Kong 
734.51— Republic of China 
734.54 — Republic of Korea 
734.56— Haiti 
734.87— Republic of China 
735.11— Republic of China 
737.40— Hong Kong 
737.80— Hong Kong 
737.95— Hong Kong 
740.10— Hong Kong 



740.30— Hong Kong 
741.20— Hong Kong 
745.08— Hong Kong 
748.12— Haiti 
748.40— Republic of China 
750.25 — Hong Kong 
750.35 — Republic of China 
750.65— Republic of Korea 
751.05 — Republic of China 
751.20— Republic of China 
755.30— Malta 
700.65— Republic of China 
771.05— Republic of China 
771.45— Republic of China 
772.03— Hong Kong 
772.35— Republic of China 
772.97— Hong Kong 
773.10— Hong Kong 
773.20— Republic of Korea 
774.60— Hong Kong 
790.39— Republic of China 
790.60— Republic of China 
790.70— Republic of Korea 
791.17 — Argentina 
791.20— Brazil 
791.25— Mexico 

jg-^ jQ [Republic of China 

JRepublic of Korea 
791.80— Republic of China 
792.22— India 

792.50— Philippine Republic 
792.60— Hong Kong 
792.75— Hong Kong" 



Sec. 10. The provisions of this Order shall be effective with respect 
to articles that are both (1) imported, and (2) (a) entered for con- 
sumption or (b) withdrawn from warehouse for consumption on or 
after the effective date of this Order. 

Sec. 11. Executive Order No. 11844 of March 24, 1975, is superseded. 

Sec. 12. This Order shall be effective on January 1, 1976. 



c. Executive Order 11854, April 24, 1975, 40 F.R. 18391 

Waiver Under tmk Trade Act of 1974 With Respect to the Social- 
ist Republic of Romania 

By virtue of the authority vested in me by section 402(c) (1) of the 
Trade Act of 1974 (Public Law 93-618, January 3, 1975; 88 Stat. 
1978, 2057), and having made the report to the Congress required by 
that provision, I hereby waive the application of subsections (a) and 
(b) of section 402 of said Act with respect to the Socialist Republic of 
Romania. 

(89) 



^ 



20-594 O - 78 



d. Executive Order 11846, March 27, 1975, 40 F.R. 14291, as 
amended by Executive Order 11894, January 6, 1976, 41 F.R. 1041 

Admixistratiox of tpie Trade Agreements Program 

By virtue of the authority vested in me by the Trade Act of 1974, 
hereinafter referred to as the Act (Public Law 93-618, 88 Stat. 1978), 
the Trade Expansion Act of 1962, as amended (19 U.S.C. 1801), Sec- 
tion 350 of the Tariff Act of 1930, as amended (19 U.S.C. 1351), and 
Section 301 of Title 3 of the United States Code, and as President of 
the United States it is hereby ordered as follows : 

Section 1. The Trade Agreements Program, The "trade agreements 
program" includes all activities consisting of, or related to, the nego- 
tiation or administration of international agreements which primarily 
concern trade and which are concluded pursuant to the authority vested 
in the President by the Constitution, Section 350 of the Tariff Act of 
1930, as amended, the Trade Expansion Act of 1962, as amended, or 
the Act. 

Sec. 2. The S'pecial Representative for Trade Negotiations. 

(a) The Special Representative for Trade Negotiations, hereinafter 
referred to as the Special Representative, in addition to the functions 
conferred upon him by the Act, including Section 141 thereof, and in 
addition to the functions and responsibilities set forth in this Order, 
shall be responsible for such other functions as the President may 
direct. 

(b) The Special Representative, except where otherwise expressly 
provided by statute, Executive order, or instructions of the President, 
shall be the chief representative of the United States for each negotia- 
tion under the trade agreements program and shall participate in 
other negotiations which may have a direct and significant impact on 
trade. 

(c) The Special Representative shall prepare, for the President's 
transmission to Congress, the annual report on the trade agreements 
program required by Section 163(a) of the Act. At the request of the 
Special Representative, other agencies shall assist in the preparation 
of that report. 

(d) The Special Representative, except where expressly otherwise 
provided or prohibited by statute. Executive order, or instructions of 
the President, shall be responsible for the proper administration of the 
trade agreements program, and may, as he deems necessary, assign to 
the head of any Executive agency or body the performance of his 
duties which are incidental to the administration of the trade agree- 
ments program. 

(e) The Special Representative shall consult with the Trade Policy 
Committee in connection with the performance of his functions, in- 
cluding those established or delegated by this Order, and shall, as 

(90) 



91 

appropriate, consult with other Federal agencies or bodies. With 
respect to the performance of his functions under Title IV of the Act, 
including those established or delegated by this Order, the Special 
Representative shall also consult with the East- West Foreign Trade 
Board. 

(f ) The Special Representative shall be responsible for the prep- 
aration and submission of any Proclamation which relates whofly or 
primarily to the trade agreements program. Any such Proclamation 
shall be subject to all the provisions of Executive Order No. 11030, as 
amended, except that such Proclamation need not be submitted to the 
Director of the Office of Management and Budget. 

(g) The Secretary of State shall advise the Special Representative, 
and the Committee, on the foreign policy implications of any action 
under the trade agreements program. The Special Representative shall 
invite appropriate departments to participate in trade negotiations of 
particular interest to such departments, and the Department of State 
shall participate in trade negotiations which have a direct and signifi- 
cant impact on foreign policy. 

Sec. 3. The Trade Policy Committee, (a) As provided by Section 
242 of the Trade Expansion Act of 1962 (19 U.S.C. 1872), as amended 
by Section 602(b) of the Act, there is established the Trade Policy 
Committee, hereinafter referred to as the Committee. The Committee 
shall be composed of : 

(I) The Special Representative, who shall be Chairman. 
(2^ The Secretary of State. 

(3) The Secretary of the Treasury. 

(4) The Secretary of Defense. 

(5) The Attorney General. 

^6) The Secretary of the Interior. 

(7) The Secretary of Agriculture. 

(8) The Secretary of Commerce. 

(9) The Secretary of Labor. 

(10) The Assistant to the President for Economic Affairs. 

(II) The Executive Director of the Council on International 
Economic Policy. 

Each member of the Committee may designate an officer of his agency, 
whose status is not below that of an Assistant Secretary, to serve in his 
stead, when he is unable to attend any meetings of the Committee. The 
Chairman, as he deems appropriate, may invite representatives from 
other agencies to attend the meetings of the Committee. 

(b) The Committee shall have the functions conferred by the Trade 
Expansion Act of 1962, as amended, upon the inter-agency organiza- 
tion referred to in Section 242 thereof, as amended, the functions dele- 
gated to it by the provisions of this Order, and such other functions as 
the President may from time to time direct. Recommendations and 
advice of the Committee shall be submitted to the President by the 
Chairman. 

(c) The recommendations made by the Committee under Section 
•242(b)(1) of the Trade Expansion Act of 1962. as amended, with 
respect to basic policy issues arising in the administration of the trade 
agreements program, as approved or modified by the President, shall 
guide the administration of the trade agreements program. The Special 



92 

Representative or any other officer who is chief representative of the 
United States in a negotiation in connection with the trade agreements 
program shall keep the Committee informed with respect to the status 
and conduct of negotiations and shall consult with the Committee 
regarding the basic policy issues arising in the course of negotiations. 

(d) Before making recommendations to the President under Section 
242(b) (2) of the Trade Expansion Act of 1962, as amended, the Com- 
mittee shall, through the Special Representative, request the advice of 
the Adjustment Assistance Coordinating Committee, established by 
Section 281 of the Act. 

(e) The Committee shall advise the President as to what action, if 
any, he should take under Section 337(g) of the Tariff Act of 1930, as 
amended by Section 341 of the Act, relating to unfair practices in 
import trade. 

(f ) The Trade Expansion Act Advisory Committee established by 
Section 4 of Executive Order No. 11075 of January 15, 1963, is abol- 
ished and all of its records are transferred to the Trade Policy 
Committee. 

Sec. 4. Trade Negotiations Under Title I of the Act 

(a) The functions of the President under Section 102 of the Act 
concerning notice to, and consultation with, Congress, in connection 
with agreements on nontariff barriers to, and other distortions of, trade, 
are hereby delegated to the Special Representative. 

(b) The Special Representative, after consultation with the Com- 
mittee, shall prepare, for the President's transmission to Congress, all 
proposed legislation and other documents necessary or appropriate for 
the implementation of, or otherwise required in connection with, trade 
agreements; provided, however, that where implementation of an 
agreement on nontariff barriers to, and other distortions of, trade 
requires a change in a domestic law, the department or agency having 
the primary interest in the administration of such domestic law shall 
prepare and transmit to the Special Representative the proposed leg- 
islation necessary or appropriate for such implementation. 

(c) The functions of the President under Section 131(c) of the Act 
with respect to advice of the International Trade Commission and 
under Section 132 of the Act with respect to advice of the departments 
of the Federal Government and other sources, are delegated to the 
Special Representative. The functions of the President under Section 
133 of the Act with respect to public hearings in connection with cer- 
tain trade negotiations are delegated to the Special Representative, 
who shall designate an interagency committee to hold and conduct any 
such hearings. 

(d) The functions of the President under Section 135 of the Act 
with respect to advisory committees and, notwithstanding the pro- 
visions of any other Executive order, the functions of the President 
under the Federal Advisory Committee Act (86 Stat. 770, 5 U.S.C. 
App. I), except that of reporting annually to Congress, which are 
applicable to advisory committees under the Act are delegated to the 
Special Representative. In establishing and organizing general policy 
advisory committees or sector advisory committees under Section 
135(c) of the Act, the Special Representative shall act through the 
Secretaries of Commerce, Labor and Agriculture, as appropriate. 



93 

(e) The functions of the President with respect to determining ad 
valorem amounts and equivalents pursuant to Sections 601 (3) and (4) 
of the Act are hereby dele<^ated to the Special Representative. The 
International Trade Commission is req^uested to advise tlie Special 
Renresentative with respect to determining such ad valorem amounts 
ana equivalents. The Special Representative shall seek the advice of 
the Commission and consult with the Committee with respect to the 
determination of such ad valorem amounts and equivalents. 

(f) Advice of the International Trade Commission under Section 
131 of the Act, and other advice or reports by the International Trade 
Commission to the President or the Special Representative, the release 
or disclosure of which is not specifically authorized or required by law, 
shall not be released or disclosed in any manner or to any extent not 
specifically authorized by the President or by the Special 
Representative. 

Sec. 5. Import Relief and Market Disruption. 

(a) The Special Representative is authorized to reauest from the 
International Trade Commission the information specified in Sections 
202(d) and203(i) (1) and (2) of the Act. 

(b) The Secretary of the Treasury, in consultation with the Secre- 
tary of Commerce or the Secretary of Agriculture, as appropriate, is 
authorized to issue, under Section 203(g) of the Act, regulations gov- 
erning the administration of any quantitative restrictions proclaimed 
in order to provide import relief and is authorized to issue, under Sec- 
tion 203(g) of the Act or 352(b) of the Trade Expansion Act of 1962, 
regulations governing the entry, or withdrawal from warehouses for 
consumption, of articles pursuant to any orderly marketing agreement. 

(c) The Secretary of Commerce shall exercise primary responsibil- 
ity for monitoring imports under any orderly marketing agreement. 

Sec. 6. Unfair Trade Practices. 

(a) The Special Representative, acting through an interagency 
committee which he shall designate for such purpose, shall provide the 
opportunity for the presentation of views, under Sections 301(d) (1) 
and 301(e)(1) of the Act, with respect to unfair or unreasonable 
foreign trade practices and with respect to the United States response 
thereto. 

(b) The Special Representative shall provide for appropriate public 
hearings under Section 301(e) (2) of the Act; and, snail issue regula- 
tions concerning the filing of requests for, and the conduct of, such 
hearings. 

(c) The Special Representative is authorized to request, pursuant 
to Section 301(e) (3) of the Act, from the International Trade Com- 
mission, its views as to the probable impact on the economy of the 
United States of any action under Section 301(a) of the Act. 

Sec. 7. East-West Foreign Trade Board. 

(a) In accordance with Section 411 of the Act, there is hereby es- 
tablished the East-West Foreign Trade Board, liereinafter referred to 
as the Board. The Board shall be composed of the following members 
and such additional members of the Executive branch as the President 
may designate: 

(1) The Secretary of State. 

(2) The Secretary of the Treasury. 



94 

(3) The Secretary of Defense.^ 

(4) The Secretary of Agriculture. 

( 5 ) The Secretary of Commerce. 

(6) The Special Representative for Trade Negotiations. 

(7) The Director of the Office of Management and Budget. 

(8) The Executive Director of the Council on International 
Economic Policy. 

(9) The President of the Export-Import Bank of the United 
States. 

(10) The Assistant to the President for Economic Affairs. 
The President shall designate the Chairman and the Deputy Chairman 
of the Board. The President may designate an Executive Secretary, 
who shall be Chairman of a working group which will include mem- 
bership from the agencies represented on the Board. 

(b) The Board shall perform such functions as are required by Sec- 
tion 411 of the Act and such other functions as the President may 
direct. 

(c) The Board is authorized to promulgate such rules and reexila- 
tions as are necessary or appropriate to carry out its responsibilities 
under the Act and this Order. 

(d) The Secretary of State shall advise the President with respect 
to determinations required to be made in connection with Sections 402 
and 409 of the Act (dealing with freedom of emigration) and Section 
403 (dealing with United States personnel missing in action in South- 
east Asia), and shall prepare, for the President's transmission to Con- 
gress, the reports and otner documents required by Sections 402 and 
409 of the Act. 

(e) The President's Committee on East- West Trade Policy, estab- 
lished by Executive Order No. 11789 of June 25, 1974, as amended by 
Section 6(d) of Executive Order No. 11808 of September 30, 1974, is 
abolished and all of its records are transferred to the Board. 

Sec. 8. Generalized System of Preferences. 

(a) The Special Representative, in consultation with the Secretary 
of State, shall be responsible for the administration of the generalized 
system of preferences under Title V of the Act. 

(b) The Committee, through the Special Representative, shall ad- 
vise the President as to which countries should be designated as bene- 
ficiary developing countries, and as to which articles should be desig- 
nated as eligible articles for the purposes of the system of generalized 
preferences. 

Sec. 9. Prior Executive Orders. 

(a) Executive Order No. 11789 of June 25, 1974, and Section 6(d) 
of Executive Order No. 11808 of September 30, 1974, relating to the 
President's Committee on East-West Trade Policy are hereby revoked. 

(b) (1) Sections 5(b), 7, and 8 of Executive Order No. 11075 of 
January 15, 1963, are hereby revoked effective April 3, 1975; (2) the 
remainder of Executive Order No. 11075, and Executive Order No. 
11106 of April 18, 1963 and Executive Order No. 11113 of June 13. 
1963, are hereby revoked. 

1 The Secretary of Defense was added to this list by Executive Order 11894, January 6, 
1970, 41 F.R. 1041. 



2. Trade Expansion Act of 1962, as amended 

Public Law 87-794 [H.R. 11970], 76 Stat. 872; 19 U.S.C. 1801-1991, approved 
October 11, 1962, as amended by Public Law 88-205 [H.R. 7885], 77 Stat. 379, 
approved December 16, 1963; and by Public Law 93-618 [H.R. 10710], 88 
Stat. 1978, approved January 3, 1975 

TITLE I— SHORT TITLE AND PURPOSES 

Sec. 101. Short Title 

This Act may bo cited as the "Trade Expansion Act of 1962". 
Sec. 102. Statement of Purposes 

The purposes of this Act are, through trade agreements affording 
fQutual trade benefits — 

(1) to stimulate the economic growth of the United States and 
maintain and enlarge foreign markets for the products of United 
States agriculture, industry, mining, and commerce; 

(2) to strengthen economic relations with foreign countries 
through the development of open and nondiscriminatory trading 
in the free world ; and 

(3) to prevent Communist economic penetration. 

TITLE II— TRADE AGREEMENTS 
Chapter 1 — General Authority 

Sec. 201. Basic Authority for Trade Ag^reements 

(a) Whenever the President de ermines that any existing duties or 
other import restrictions of any foreign country or the United States 
are unduly burdening and restricting the foreign trade of the United 
States and that any of the purposes stated in section 102 will be pro- 
moted thereby, the President may — 

(1) after June 30, 1962, and before July 1, 1967, enter into 
trade agreements with foreign countries or instrumentalities 
thereof; and 

(2) proclaim such modification or continuance of any existing 
duty or other import restriction, such continuance of existing 
duty-free or excise treatment, or such additional import restric- 
tions, as he determines to be required or appropriate to carry out 
any such trade agreement. 

(b) Except as otherwise provided in this title, no proclamation 
pursuant to subsection (a) shall be made — 

(1)^ decreasing any rate of duty to a rate below 50 percent of 

'Public Law 90-14 (81 Stat. 14), Mav 5. 1967. states: "section 201(b)(1) (relating 
to limit on decrease In duty), sections '221, 223, and 224 (relating to certain require- 
ments concerning negotiations), and section 253 (relating to staging requirements) of 
siirh Act shall not apply with respect to dicyandlamide provided for in Item 425.40 of 
t'le Tariff Schedules of the United States, and shall not apply with respect to limestone, 
vvhen imported to be used in the manufacture of cement, provided for in item 513.34 of 
«nch Schedules." 

(95) 



96 

the rate existing on July 1, 1962 ; or 

(2) increasing any rate of duty to (or imposing) a rate more 
than 60 percent above the rate existing on July 1, 1934. 

Sections 202, 211, 212, 213, 221, 222, 223, 224, 225, 226, 231. 

[Repealed by the Trade Act of 1974, Public Law 93-618 (88 Stat. 
1979; 19 U.S.C. 2101-2487).] 

Sec. 232. Safeguarding National Security 

(a) No action shall be taken pursuant to section 201(a) or pursuant 
to section 350 of the Tariff Act of 1930 to decrease or eliminate the 
duty or other import restriction on any article if the President deter- 
mines that such reduction or elimination would threaten to impair the 
national vSecurity. 

(b)2 Upon request of the head of any department or agency, upon 
application of an interested party, or upon his own motion, the Secre- 
tary of the Treasury (hereinafter referred to as the ^Secretary') shall 
immediately make an appropriate investigation, in the course of which 
lie shall seek information and advice from, and shall consult with, the 
Secretary of Defense, the Secretary of Commerce, and other appropri- 
ate officers of the United States to determine the effects on the na- 
tional security of imports of the article which is the subject of such 
request, application, or motion. The Secretary shall, if it is appropri- 
ate and alter reasonable notice, hold public hearings or otherwise 
afford interested parties an opportunity to present information and 
advice relevant to such investigation. The Secretary shall report the 
findings of his investigation under this subsection with respect to the 
effect of the importation of such article in such quantities or under 
such circumstances upon the national security and, based on such find- 
ings, his recommendation for action or inaction under this section to 
the President within one year after receiving an application from an 
interested party or otherwise beginning an investigation under this 
subsection. If the Secretary finds that such article is being imported 
into the United States in such quantities or under such circumstances 
as to threaten to impair the national security, he shall so advise the 
President and the President shall take such action, and for such time, 
as he deems necessary to adjust the imports of such article and its de- 
rivatives so that such imports will not threaten to impair the national 
security, unless the President determines that the article is not being 
imported into the United States in such quantities or under such cir- 
cumstances as to threaten to impair the national security. 

(c) For the purposes of this section, the Secretary and the President 
shall, in the light of the requirements of national security and with- 
out excluding other relevant factors, give consideration to domestic 

2 As amended by sec. 127(d) of Public Law 93-618 (88 Stat. 1978 at 1993) which 
substituted "Secretary of the Treasury (hereinafter referred to as the 'Secretary')" for 
"Director of the Office of Emegency Planning (hereinafter In this section referred to as 
the 'Director')" ; and which substituted "advice from, and shall consult with, the Secretary 
of Defense, the Secretary of Commerce, and other appropriate oflScers of the United States 
for "advice from other appropriate departments and agencies". Public Law 93-018 also 
substituted the last sentence of this subsection for one which formerly read as follows : 

"If, as a result of such investigation, the Director is of the opinion that the said 
article is being imported into the United States in such quantities or under such circum- 
stances as to threaten to impair the national security, he shall promply so advise the 
President, and, unless the President determines that the article is not being imported 
Into the United States in such quantities or under such circumstances as to threaten 
to impair the national security as set forth In this section, he shall take such action, and 
for such time, as he deems necessary to adjust the Imports of such article and Its derlva 
tlves so that such imports will not so threaten to Impair the national security." 



97 

production needed for projected national defense requirements, the 
rapacity of domestic industries to meet such requirements, existing 
and anticipated availabilities of the human resources, products, raw 
materials, and other supplies and services essential to the national 
lofcnse, the requirements of growth of such industries and such sup- 
plies and services including the investment, exploration, and develon- 
ment necessary to assure such growth, and the importation of goods 
in terms of their quantities, availabilities, character, and use as those 
affect sucli industries and the capacity of the United States to meet 
national security requirements. In the administration of this section, 
the Secretary and the President shall furtlier recognize the close rela- 
tion of the economic welfare of the Nation to our national security, 
and shall take into consideration the impact of foreign competition 
on the economic welfare of individual domestic industries; and any 
substantial unemployment, decrease in revenues of government, loss 
of skills or investment, or other serious effects resulting from the dis- 
placement of any domestic products by excessive imports shall be con- 
sidered, without excluding other factors, in determining whether such 
weakening of our internal economy may impair the national security, 
(d) A report shall be made and published upon the disposition of 
each request, application, or motion under subsection (b). The Secre- 
tary shall publish procedural regulations to give effect to the authority 
conferred on him by subsection (b) . 

Chapter 5 — Administrattve Provisions 

Sec. 241. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Sec. 242. Interagency Trade Organization. 

(a) The President shall establish an interagency organization to 
issist him in carrying out the functions vested in him by this title and 
sections 201, 202, and 203 of the Trade Act of 1974.3 Such organization 
^hall, in addition to the Special Representative for Trade Negotiations, 
be composed of the heads of such departments and of such other officers 
as the President shall designate. It shall meet at such times and with 
respect to such matters as the President or the chairman of the organi- 
zation shall direct. The organization may invite the participation in 
its activities of any agency not represented in the organization when 
matters of interest to such agency are under consideration. 

(b) In assisting the President, the organization shall — 

(1) make recommendations to the President on basic policy 
issues arising in the administration of the trade agreements 
program, 

(2) make recommendations to the President as to what action, 
if any, he should take on reports submitted to him by the Tariff 
Commission under section 201(d) of the Trade Act of 1974,' 

(3) advise the President of the results of hearings held pursuant 
to subsections (c) and (d) of section 301 of the Trade Act of 1974 * 
and recommend appropriate action with respect thereto, and 

^ See p. 35 for text. 
» See p. 48 for text. 



98 

(4) perform such other functions with respect to the trade 
agreements program as the President may from time to time 
designate, 
(c) The organization shall, to the maximum extent practicable, 
draw upon the resources of the agencies represented in the organiza- 
tion, as well as such other agencies as it may determine, including the 
Tariff Commission. In addition, the President may establisli by regu- 
lation such procedures ;uid committees as ho may determine to be 
uecessaiy to enable the organization to provide for the conduct of 
hearings pursuant to subsections (c) and (d) of section 301 of the 
Trade Act of 1974, and for the carrying out of other functions assigned 
to the organization pursuant to this section. 

Sec. 243. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Chapter 6 — General Provisioxs 

Sec. 251. Most-Favored-Nation Principle 

Except as otherwise provided in this title, in section 350(b) of the 
Tariff Act of 1930, or in section 401(a) of the Tariff Classification 
Act of 1962, any duty or other import restriction or duty-free treat- 
ment proclaimed in carrying out any trade agreement under this 
title or section 350 of the Tariff Act of 1930 shall apply to products 
of all foreign countries, whether imported directly or indirectly. 

Sec. 252. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Sec. 253. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Sec. 254. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Sec. 255. Termination 

(a) [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

(b) The President may at any time terminate, in whole or in part, 
any proclamation made under this title. 

Sec. 256. [Repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

Sec. 257. Relation to Other Laws 

(a) The first sentence of subsection (b) of section 350 of the Tariff 
Act of 1930 is amended by striking out "this section" each place it 
appears and inserting in lieu thereof "this section or the Trade Expan- 
sion Act of 1962". The second sentence of such subsection (b) is 
amended by striking out "this Act" and inserting in lieu thereof "this 
Act or the Trade Expansion Act of 1962". The third sentence of such 
subsection (b) is amended by striking out "1955," in paragraph (2) 
and inserting in lieu thereof "1955, and before July 1, 1962," and by 
adding at the end thereof the following new paragraph : 

"(3) In order to carry out a foreign trade agreement entered 
into after June 30, 1962, and before July 1, 1967, below the lowest 



m 

rate permissible by applying title II of the Trade Expansion Act 
of 1962 to the rate of duty (nowever established, and even though 
temporarily suspended by Act of Congress or otherwise) existing 
on July 1, 1962, with respect to such product." 

(b) Subsections (a) (6) and (e) of section 350 of the Tariff Act of 
1930 are repealed. 

(c) For purposes only of entering into trade agreements pursuant 
to the notices of intention to negotiate published in the Federal Regis- 
ter of May 28, 1960, and the Federal Register of November 23, 1960, 
the period during which the President is authorized to enter into 
foreign trade agreements under section 350 of the Tariff Act of 1930 
is hereby extended from the close of June 30, 1962, until the close of 
December 31, 1962. 

(d) The second and third sentences of section 2 (a) of the Act entitled 
"An Act to amend the Tariff Act of 1930", approved June 12, 1934, 
as amended (19 U.S.C., sec. 1352(a)), are eacn amended by striking 
out "this Act" and inserting in lieu thereof "this Act or the Trade 
Expansion Act of 1962". 

(e) (1) Sections 5, 6, 7, and 8(a) of the Trade Agreements Exten- 
sion Act of 1951 are repealed. 

(2) Action taken by the President under section 5 of such Act and in 
effect on the date of the enactment of this Act shall be considered as 
having been taken by the President under section 231. 

(3) Any investigation by the Tariff Commission under section 7 
of such Act which is in progress on the date of the enactment of this 
Act shall be continued under section 301 as if the application by the 
interested party were a petition under such section for tariff adjust- 
ment under section 351. For purposes of section 301(f), such petition 
shall be treated as having been filed on the date of the enactment of 
this Act. 

(f ) Section 2 of the Act entitled "An Act to extend the authority of 
the President to enter into trade agreements under section 350 of the 
Tariff Act of 1930, as amended", approved July 1, 1954, is repealed. 
Any action (including any investigation begun) under such section 2 
before the date of the enactment of this Act shall be considered as 
having been taken or begun under section 232. 

(g)(1) Section 102(1) of the Tariff Classification Act of 1962 is 
amended by striking out "of schedules 1 to 7, inclusive,". 

(2) Section 203 of the Tariff Classification Act of 1962 is amended 
to read as follows : 

"Sec. 203. For purposes of applying sections 323 and 350 of the 
Tariff Act of 1930, as amended, and the Trade Expansion Act of 1962 
with respect to the Tariff Schedules of the United States — 

" (1) The rate of duty in rate column numbered 2 for each item 
in schedules 1 to 7, inclusive, of the Tariff Schedules of the United 
States shall be treated as the rate of duty existing on July 1, 1934. 
"(2) The lowest preferential or nonpreferential rate of dut;7 in 
rate column numbered 1 for each item in schedules 1 to 7, inclusive, 
of the Tariff Schedules of the United States on the effective date 
provided in section 501 (a) of this Act shall be treated as the lowest 
preferential or nonpreferential rate of duty, respectively, existing 



100 

on July 1, 1962 ; except that in the case of any such item included 
in a supplemental report made pursuant to section 101(c) of this 
Act to reflect a change proclaimed by the President after July 1, 
1962 (other than a change to which the United States was com- 
mitted on July 1, 1962), the rate treated as the lowest nonprefer- 
ential rate of duty existing on July 1, 1962, shall be the rate which 
the Commission specifically declares in such supplemental report 
to be the rate which, in its judgment, conforms to the fullest extent 
practicable to the rate regarded as existing on July 1, 1962, under 
section 256(4) of the Trade Expansion Act of 1962. 

"(3) Legislation entering into force after the effective date pro- 
vided for in section 501 (a) of this Act which results in the perma- 
nent reclassification of any article without specifying the rate of 
duty applicable thereto, and proclamations under section 202(c) 
of this Act, shall be considered as having been in effect since 
June 30, 1962." 
(h) Nothing contained in this Act shall be construed to affect in 

any way the provisions of section 22 of the Agricultural Adjustment 

Act, or to apply to any import restriction heretofore or hereafter 

imposed under such section. 

(i) Part I of title III of the Tariff Act of 1930 is amended by 

adding at the end thereof the following new section : 

"Sec. 323. Coxservatiox of Fishery Resources 

"Upon the convocation of a conference on the use or conservation 
of international fishery resources, the President shall, by all appropri- 
ate means at his disposal, seek to persuade countries whose domestic 
fishing practices or policies affect such resources, to engage in negotia- 
tions m good faith relating to the use or conservation of such re- 
sources. If, after such efforts by the President and by other coun- 
tries which have agreed to engage in such negotiations, any other 
country whose conservation practices or policies affect the interests of 
the United States and such other countries, has, in the judgment of the 
President, failed or refused to engage in such negotiations in good 
faith, the President may, if he is satisfied that such action is likely to 
be effective in inducing such country to engage in such negotiations in 
good faith, increase the rate of duty on any fish (in any form) 
which is the product of such country, for such time as he deems neces- 
sary, to a rate not more than 50 percent above the rate existing on 
July 1,1934." 

Sec. 258. References 

All provisions of law (other than this Act and the Trade Agree- 
ments Extension Act of 1951) in effect after June 30, 1962, referring 
to section 350 of the Tariff Act of 1930, to that section as amended, to 
the Act entitled "An Act to amend the Tariff Act of 1930", approved 
June 12, 1934, to that Act as amended, or to agreements entered into, 
or proclamations issued, under any of such provisions, shall be con- 
strued, unless clearly precluded by the context, to refer also to this 
Act, or to agreements entered into or proclamations issued, pursuant 
to this Act. 



101 

TITLE III— TARIFF ADJUSTMENT AND OTHER 
ADJUSTMENT ASSISTANCE 

Chapter 1 — Eugibiliit for Assistance 

[Sections 301 and 302 were repealed by Public Law 93-618 (88 
Stat. 1978).] 

Chapter 2 — Assistance to Firms 

[Sections 311 through 315 were repealed by Public Law 93-618 (88 
Stat. 1978).] 

Sec. 316. Administration of Financial Assistance 

(a) In niakin<r and administering guarantees, agreements for de- 
ferred participation, and loans under section 314, the Secretary of 
(.'ommerce may — 

(1) require security for any such guarantee, agreement, or loan, 
and enforce, waive, or subordinate such security ; 

(2) assign or sell at public or private sale, or otherwise dispose 
of, upon such terms and conditions and for such consideration as 
he shall determine to be reasonable, any evidence of debt, contract, 
claim, personal property, or security assigned to or held by him 
in connection" with such guarantees, agreements, or loans, and col- 
lect, compromise, and obtain deficiency judgments with respect to 
all obligations assigned to or held by him in connection with 
such guarantees, agreements, or loans until such time as such 
obligations may be referred to the Attorney General for suit or 
collection; 

(3) renovate, improve, modernize, complete, insure, rent, sell, 
or otherwise deal with, upon such terms and conditions and for 
such consideration as he shall determine to be reasonable, any real 
or personal property conveyed to or otherwise acquired by him in 
connection with such guarantees, agreements, or loans; 

(4) acquire, hold, transfer, release, or convey any real or per- 
sonal property or any interest therein whenever deemed necessary 
or appropriate, and execute all legal documents for such purposes; 
and 

(5) exercise all such other powers and take all such other acts 
as may be necessary or incidental to the carrying out of functions 
pursuant to section 314. 

(b) Any mortgage acquired as security under subsection (a) shall 
be recorded under applicable State law. 

Sec. 317. Tax Assistance 

[Section 317(a) was repealed by Public Law 93-618 (88 Stat. 
1978).] 

(b) Effective with respect to net operating losses for taxable years 
ending after December 31, 1955, subsection (b) of section 172 of the 
Internal Revenue Code of 1954 (relating to net operating loss carry- 
hacks and carrsovers) is amended to read as follows: 
"(b) Xet Operatixg Loss Carrybacks axd Carryo\-ers. — 
"(1) Years to w^hicii loss may be carried. — 

"(A) (i) Except as provided in clause (ii). a net operat- 
ing loss for any taxable year ending after December 31, 1957, 



102 

shall be a net operating loss carryback to each of the 3 taxable 
years preceding the taxable year of such loss. 

"(ii) In the case of a taxpayer with respect to a taxable 
year ending on or after December 31, 1962, for which a 
certification has been issued under section 317 of the Trade 
Expansion Act of 1062, a net operating loss for such taxable 
year shall be a net operating loss carryback to each of the 5 
taxable years preceding the taxable year of such loss. 

"(B) Except as provided in subparagraph (C) , a net oper- 
ating loss for any taxable year ending after December 31. 
1955, shall be a net operating loss carryover to each of the 5 
taxable years following the taxable year of such loss. 

"(C) In the case of a taxpayer which is a regulated trans- 
portation corporation (as defined in subsection (j)(l)), a 
net operating loss for any taxable year ending after Decem- 
ber 31, 1955, shall (except as provided in subsection (j) ) be 
a net operating loss carryover to each of the 7 taxable years 
following the taxable year of such loss. 
"(2) Amount of carrybacks and carryovers. — Except as pro- 
vided in subsections (i) and (j), the entire amount of the net 
operating loss for any taxable year (hereinafter in this section 
referred to as the 'loss year') shall be carried to the earliest of the 
taxable years to which (by reason of paragraph (1)) such loss 
may be carried. The portion of such loss which shall be carried 
to each of the other taxable years shall be the excess, if any, of the 
amount of such loss over the sum of the taxable income for each 
of the prior taxable years to which sum loss may be carried. For 
purposes of the preceding sentence, the taxable income for any 
such prior taxable year shall be computed — 

"(A) with the modifications specified in subsection (d) 
other than paragraphs (1), (4), and (6) thereof; and 

"(B) by determining the amount of the net operating loss 
deduction without regard to the net operating loss for the 
loss year or for any taxable year thereafter, 
and the taxable income so computed shall not be considered to be 
less than zero. 
"C3) Special Rui.ES. — 

"(A) Paragraph (1) (A) (ii) shall apply only if — 

"Ci) there has been filed, at such time and in such 
manner as may be prescribed by the Secretary or his 
delegate, a notice of filing of the application under sec- 
tion 317 of the Trade Expansion Act of 1962 for tax 
assistance, and, after its issuance, a copy of the certifica- 
tion under such section, and 

"(ii) the taxpayer consents in writing to the assess- 
ment, within such period as may be agreed upon with 
the Secretary or his delegate, of any deficiency for any 
year to the extent attributable to the disallowance of a 
deduction previously allowed with respect to such T\et 
operating loss, even though at the time of filing such 
consent the assessment of such deficiency would other- 
wise be prevented by the operation of any law or rule 
of law. 



103 

"(B) In the case of— 

"(i) a partnership and its partners, or 
"(ii) an electing small business corporation under 
subchapter S and its shareholders, 
paragraph (1) (A) (ii) shall apply as determined under regu- 
lations prescribed by the Secretary or his delegate. Such 
paragraph shall apply to a net operating loss of a partner or 
such a shareholder only if it arose predominantly from losses 
in respect of which certifications under section 317 of the 
Trade Expansion Act of 1962 were filed under this section." 

(c) Subsection (h) of section 6501 of the Internal Revenue Code of 
1954 (relating to limitations on assessment and collection in the case 
of net operatmg loss carrybacks) is amended by inserting before the 
period : ", or within 18 months after the date on which the taxpayer 
files in accordance with section 172(b) (3) a copy of the certification 
(with respect to such taxable yearj issued under section 317 of the 
Trade Expansion Act of 1962, whicnever is later". 

(d) Section 6511(d) (2) (A) of the Internal Revenue Code of 1954 
(relating to special period of limitation on credit or refund with 
respect to net operating loss carrybacks) is amended to read as follows : 

"(A) Period of limitation. — If the claim for credit or 
refund relates to an overpayment attributable to a net operat- 
ing loss carrj'back, in lieu of the 3-year period of limitation 
prescribed in subsection (a), the period shall be that period 
which ends with the expiration of the 15th day of the 40th 
month (or the 39th month, in the case of a corporation) fol- 
lowing the end of the taxable year of the net operating loss 
which results in such carryback, or the period prescribed in 
subsection (c) in respect of 'such taxable year, whichever 
expires later; except that — 

"(i) with respect to an overpayment attributable to 
a net operating loss carryback to any year on account of 
a certification issued to the taxpayer under section 317 
of the Trade Expansion Act of 1962, the period shall not 
expire before the expiration of the sixth month follow- 
ing the month in which such certification is issued to the 
taxpayer, and 

"(ii) with respect to an overpayments attributable to 
the creation of, or an increase in, a net operating loss 
carryback as a result of the elimination of excessive prof- 
its by a renegotiation (as defined in section 1481(a) (1) 
(A)), the period shall not expire before September 1, 
1959, or the expiration of the twelfth month following 
the month in which the agreement or order for the 
elimination of such excessive profits becomes final, which- 
ever is the later. 
In the case of such a claim, the amount of the credit or refund 
may exceed the portion of the tax paid within the period pro- 
vided in subsection (b)(2) or (c), whichever is applicable, 
to the extent of the amount of the overpayment attributable 
to such carryback." 



104 

Sec. 318. Protective Provisions 

(a) Each recipient of adjustment assistance under section 313, 314, 
or 317 shall keep records which fully disclose the amount and disposi- 
tion by such recipient of the proceeds, if any, of such adjustment 
assistance, and which will facilitate an effective audit. The recipient 
shall also keep such other records as the Secretary of Commerce may 
prescribe. 

(b) The Secretary of Commerce and the Comptroller General of 
the United States shall have access for the purpose of audit and exami- 
nation to any books, documents, papers, and records of the recipient 
pertaining to adjustment assistance under sections 313, 314, and 317. 

(c) No adjustment assistance shall be extended under section 313, 
314, or 317 to any firm unless the owners, partners, or officers certify 
to the Secretary of Commerce — 

(1) the names of any attorneys, agents, and other persons en- 
gaged by or on behalf of the firm for the purpose of expediting 
applications for such adjustment assistance, and 

(2) the fees paid or to be paid to any such person. 

(d) No financial assistance shall be provided to any firm under 
section 314 unless the owners, partners, or officers shall execute an 
agreement binding them and the firm for a period of 2 years after 
such financial assistance is provided, to refrain from employing, 
tendering any office or employment to, or retaining for professional 
services any person who, on the date such assistance or any part 
thereof was provided, or within one year prior thereto, shall nave 
served as an officer, attorney, agent, or employee occupying a position 
or engaging in activities which the Secretary of Commerce shall have 
determined involve discretion with respect to the provision of such 
financial assistance. 

Sec. 319. Penalties 

Whoever makes a false statement of a material fact knowing it to 
be false, or knowingly fails to disclose a material fact, or whoever 
willfully overvalues any security, for the purpose of influencing in 
any way the action of the Secretary of Commerce under this chapter, 
or for the purpose of obtaining money, property, or anything of value 
under this chapter, shall be fined not more than $5,000 or imprisoned 
for not more than two years, or both. 

Sec. 320. Suits 

In providing technical and financial assistance under sections 313 
and 314, the Secretary of Commerce may sue and be sued in any court 
of record of a State having general jurisdiction or m any United 
States district court, and jurisdiction is conferred upon such district 
court to determine such controversies without regard to the amount 
in controversy; but no attachment, injunction, garnishment, or other 
similar process, mesne or final, shall be issued against him or his prop- 
erty. Nothing in this section shall be construed to except the activities 
pursuant to sections 313 and 314 from the application of sections 
507(b) and 2679 of title 28 of the United States Code, and of section 
367 of the Revised Statutes (5 U.S.C., sec. 31 6) . 



105 

Chapter 3 — Assistance to Workers 

[Sections 321 through 338 were repealed by Public Law 93-618 
(88 Stat. 1978).] 

Chapter 4 — Tariff Adjustment 

Sec. 351. Authority 

(a)(1) After receiving an affirmative finding of the Tariff Coni- 
mission under section 301(b) with respect to an industry, the Presi- 
dent may proclaim such increase in, or imposition of, any duty or 
other import restriction on the article causing or threatening to cause 
serious injury to such industry as he determines to be necessary to 
prevent or remedy serious injury to such industry. 

(2] If the President does not, within 60 days after the date on 
whicn he receives such affirmative finding, proclaim the increase in, 
or imposition of, any duty or other import restriction on such article 
found and reported by the Tariff Commission pursuant to section 
301(e)— 

(A) he shall immediately submit a report to the House of Rep- 
resentatives and to the Senate stating why he has not proclaimed 
such increase or imposition, and 

(B) such increase or imposition shall take effect (as provided 
in paragraph (3) ) upon the adoption by both Houses of the Con- 
gress (within the 60-day period following the date on which the 
report referred to in subparagraph (A) is submitted to the House 
of Representatives and the Senate), by the yeas and nays by the 
affirmative vote of a majority of the authorized membership of 
each House, of a concurrent resolution stating in effect that the 
Senate and House of Representatives approve the increase in, or 
imposition of, any duty or other import restriction on the article 
found and reported by the Tariff Commission. 

For purposes of subparagraph (B), in the computation of the 60-day 
period there shall be excluded the days on which either House is not 
m session because of adjournment of more than 3 days to a day cer- 
tain or an adjournment of the Congress sine die. The report referred 
to in subparagraph (A) shall be delivered to both Houses of the Con- 
gress on the same day and shall be delivered to the Clerk of the House 
of Representatives if the House of Representatives is not in session and 
to the Secretary of the Senate if the Senate is not in session. 

(3) In any case in which the contingency set forth in paragraph 
(2) (B) occurs, the President shall (within 15 days after the adoption 
of such resolution) proclaim the increase in, or imposition of, any duty 
or other import restriction on the article which was found and reported 
by the Tariff Commission pursuant to section 301 (e) . 

(4) The President may, within 60 days after the date on which he 
receives an affirmative finding of the Tariff Commission under sec- 
tion 301 (b) with respect to an industry, roqnost additional information 
from the Tariff Commission. The Tariff Commission shall, as soon 
as practicable but in no event more than 120 days after the date on 
which it receives the President's request, furnish additional informa- 



106 

tion with respect to such industry in a supplemental report. For pur- 
poses of paragraph (2), the date on which the President receives such 
supplemental report shall be treated as the date on which the Presi- 
dent received the affirmative finding of the TariJff Commission with 
respect to such industry. 

(b) No proclamation pursuant to subsection (a) shall be made — 

(1) increasing any rate of duty to a rate more than 50 percent 
above the rate existing on July 1, 1934, or, if the article is dutiable 
but no rate existed on July 1, 1934, the rate existing at the time of 
the proclamation, 

(2) in the case of an article not subject to duty, imposing a duty 
ir excess of 50 percent ad valorem. 

For purposes of paragraph (1), the term "existing on July 1, 1934" 
has the meaning assigned to such term by paragraph (5) of section 
256. 

(c) (1) Any increase in, or imposition of, any duty or other import 
restriction proclaimed pursuant to this section or section 7 of the 
Trade Agreements Extension Act of 1951 — 

(A) may be reduced or terminated by the President when he 
determines, after taking into account the advice received from the 
Tariff Commission under subsection (d) (2) and after seeking 
advice of the Secretary of Commerce and the Secretary of Labor, 
that such reduction or termination is in the national interest, and 

(B) unless extended under paragraph (2), shall terminate not 
later than the close of the date which is 4 years (or, in the case of 
any such increase or imposition proclaimed pursuant to such sec- 
tion 7, 5 3' ears) after the effective date of the initial proclamation 
or the date of the enactment of this Act, whichever date is the 
later. 

(d) (1) So long as any increase in, or imposition of, any duty or 
other import restriction pursuant to this section or pursuant to section 
7 of the Trade Agreements Extension Act of 1951 remains in effect, 
the Tariff Commission shall keep under review developments with re- 
spect to the industry concerned, and shall make annual reports to the 
President concerning such developments. 

(2) Upon request of the President or upon its OAvn motion, the 
Tariff Commission shall advise the President of its judgment as to the 
probable economic effect on the industry concerned of the reduction or 
termination of the increase in, or imposition of, any duty or other 
import restriction pursuant to this section or section 7 of the Trade 
Agreements Extension Act of 1951. 

(4) In advising the President under this subsection as to the prob- 
able economic effect on the industry concerned, the Tariff Commission 
shall take into account all economic factors which it considers relevant 
including idling of productive facilities, inability to operate at a level 
of reasonable profit, and unemployment or underemployment. 

(5) Advice by the Tariff Commission under this subsection shall 
be given on the basis of an investigation during the course of which 

•Repealed by Public Law 93-618 (88 Stat. 1978; 19 IJ.S.C. 2101-2487). 



107 

the Tariff Commission shall hold a hearing at which interested per- 
sons shall be given a reasonable oj^portunity to be present, to produce 
evidence, and to be heard. 

(e) The President, as soon as practicable, shall take such action as 
ho determines to be necessary to oring trade agreements entered into 
under section 350 of the Tariff Act of 1930 into conformity with the 
provisions of this section. No trade agreement shall be entered into 
under section 201(a) unless such agreement permits action in con- 
formity with the provisions of this section. 

Sec. 352. Orderly Marketing Agreements 

(a) After receiving an affirmative finding of the Tariff Commission 
under section 301(b) with respect to an industry, the President may, 
in lieu of exercising the authority contained in section 351(a) (1) but 
subject to the provisions of section 351(a) (2), (3), and (4), negotiate 
international agreements with foreign countries limiting the export 
from such countries and the import into the United States of the 
article causing or threatening to cause serious injury to such industry, 
whenever he determines that such action would be more appropriate 
to prevent or remedv serious injury to such industry than action under 
section 351(a)(1). " 

(b) In order to carry out an agreement concluded under subsection 
(a), the President is authorized to issue regulations governing the 
entry or withdrawal from warehouse of the article covered by such 
agreement. In addition, in order to carry out a multilateral agree- 
ment concluded under subsection (a) among countries accounting for 
a significant part of world trade in the article covered by such agree- 
ment, the President is also authorized to issue regulations governing 
the entry or withdrawal from warehouse of the like article which is 
the product of countries not parties to such agreement. 

CiiAiTER 5 — Advisory Board 

Sec. 361. [Repealed by Public La.w 93-618 (88 Stat. 1978; 19 U.S.C. 
2101-2487).] 

TITLE IV— GENERAL PROVISIONS 

[Sections 401, 402, 403, 404, and 405 (1), (3), (4), and (5) were 
repealed by Public Law 93-618 (88 Stat. 1978; 19 U.S.C. 2101-2487).] 

Sec. 405. Definitions 

For purposes of this Act — 

* * * * « * * 

(2) The term "duty or other import restriction" includes (A) 
the rate and form of an import duty, and (B) a limitation, pro- 
hibition, charge, and exaction other than duty, imposed on impor- 
tation or imposed for the regulation of imports. 

♦ ♦♦♦♦♦♦ 

(6) The term "modification", as applied to any duty or other 
import restriction, includes the eliminntion of any duty. 



3. Antidumping Legislation 
a. Antidumping Act, 1921, as amended ^ 

Title II of Public Law 67-10 [H.R. 2435], 42 Stat. 11, approved May 27, 1921, as 
amended by Public Law 83-768 [H.R. 10009], 68 Stat. 1136, approved Septem- 
ber 1, 1954; Public Law 85-630 [H.R. 6006], 72 Stat. 583, approved August 14, 
1958; Public Law 91-27 [S. 2624], 84 Stat. 274, approved May 28, 1970; and by 
Public Law 93-618 [H.R. 10710], 88 Stat. 1978, approved January 3, 1975 

DUMPING IN^'ESTIGATION 

Sec. 201.2 (a) Whenever the Secretary of the Treasury (hereinafter 
called the "Secretary") determines that a class or kind of foreign 
merchandise is being, or is likely to be, sold in the United States or 
elsewhere at less than its fair value, he shall so advise the United 
States International Trade Commission, and the Commission shall 
determine within three months thereafter whether an industry in the 
United States is being or is likely to be injured, or is prevented from 
being established, by reason of the importation of such merchandise 
into the United States. The Commission, after such investigation as it 
deems necessary, shall notify the Secretary of its determination, and, 
if that determination is in the affirmative, the Secretary shall make 
public a notice (hereinafter in this Act called a "finding") of his deter- 
mination and the determination of the Commission. For the pur- 
poses of this subsection, the Commission shall be deemed to have 
made an affirmative determination if the Commissioners of the Com- 
mission voting are evenly divided as to whether its determination 
should be in the affirmative or in the negative.^ The Secretary's finding 
shall include a description of the class or kind of merchandise to which 
it applies in such detail as he shall deem necessary for the guidance 
of customs officers. 

(b)* (1) In the case of any imported merchandise of a class or kind 
as to which the Secretary has not so made public a finding, he shall, 
within six months after the publication under su])section (c) (1) of a 
notice of initiation of an investigation — 

(A) determine whether there is reason to believe or suspect, 
from the invoice or other papers or from information presented 
to him or to any other person to whom authority under this sec- 
tion has been delegated, that the purchase price is less, or that the 
exporter's sales price is less or likely to be less, than the foreign 
market value (or, in the absence of such value, than the con- 
structed value) ; and 

(B) if his determination is affirmative, publish a notice of that 
fact in the Federal Kegister, and require under such regulations 

1 19 U.S.C. 160-173. 

2 As amended and restated by sec. 301 of Publlr Law 83-768 (68 Stat. 1139; 19 U.S.C. 
160) and by sec. 321 of Public Law 9.3-618 (88 Stat. 2043). Section 321 also substituted 
"United states International Trade Commission" for "United States Tarifif Commission.'' 

3 Added by sec. 1 of Public Law 85-6.30 (72 Stat. ^S3). 

(108) 



109 

as he mav prescribe, the withholding of appraisement as to 
such merchandise entered, or withdrawn from warehouse, for con- 
sumption on or after the date of publication of that notice in the 
Federal Register (or such earlier date, not more than one hunderd 
and twenty days before the date of publication under subsection 
(c) (1) of notice of initiation of the investigation, as the Secretary 
may prescribe), until the further order of the Secretary, or until 
the Secretary has made public a finding as provided for in sub- 
section (a) in regard to such merchandise ; or 

(C) if his determination is negative (or if he tentatively deter- 
mines that the investigation should be discontinued), publish 
notice of that fact in the Federal Register. 

(2) If in the course of an investigation under this subsection the 
Secretary concludes that the determination provided for in paragraph 
(1) cannot reasonably be made within six months, he shall publish 
notice of this in the Federal Register, together with a statement of 
reasons therefor, in which case the determination shall be made within 
nine months after the publication in the Federal Register of the notice 
of initiation of the investigation. 

(3) Within three months after publication in the Federal Register 
of a determination under paragraph (1), the Secretary shall make a 
final determination whether the foreign merchandise in question is 
being or is likely to be sold in the United States at less than its fair 
value (or a final discontinuance of the investigation) . 

(c)* (1) The Secretary shall, within thirty days of the receipt of 
information alleging that a particular class or kind of merchandise is 
being or is likely to be sold in the United States or elsewhere at less 
than its fair value and that an industry in the United States is being 
or is likely to be injured, or is prevented from being established, by 
reason of the importation of such merchandise into the United States, 
determine whether to initiate an investigation into the question of 
whether such merchandise in fact is being or is likely to be sold in 
the United States or elsewhere at less than its fair value. If his deter- 
mination is affirmative he shall publish notice of the initiation of such 
an investigation in the Federal Register. If it is negative, the inquiry 
shall be closed. 

(2) If, in the course of making a determination under paragraph 
(1), the Secretary concludes, from the information available to him, 
that there is substantial doubt whether an industry in the United 
States is being or is likely to be injured, or is prevented from being 
established, by reason of the importation of such merchandise into the 
United States, he shall forward to the Commission the reasons for such 
substantial doubt and a preliminary indication, based upon whatever 
price information is available, concerning possible sales at less than 
fair value, including possible margins of dumping and the volume of 
trade. If within thii-ty days after receipt of such information from the 
Secretary, the Commission, after conductinrr such inquiry as it deems 
appropriate, determines there is no reasonable indication that an indus- 
try in the United States is being or is likely to be injured, or is pre- 
vented from being established, by reason of the importation of such 
merchandise into the United States, it shall advise the Secretary of 
its determination and any investigation undei* subsection (b) then in 
progress shall be terminated. 



no 

(d)(1) * Before making any determination under subsection (a), 
the Secretary or the Commission, as the case may be, shall, at the 
requBst of any foreign manufacturer or exporter, or any domestic 
importer-, of the foreign merchandise in question, or of any domestic 
manufacturer, producer, or wholesaler of merchandise of the same 
class or kind, conducts a hearing at which — 

(A) any such person shall have the right to appear by counsel 
or in person ; and 

(B) any other person, firm, or corporation may make applica- 
tion and, upon good cause shown, may be allowed by the Secretary 
or the Commission, as the case may be, to intervene and appear 
at such hearing by counsel or in person. 

(2) The Secretary, upon determining whether foreign merchandise 
is being, or is likely to be, sold in the United States at less than its 
fair value, and the Commission, upon making its determination under 
subsection (a), shall publish in the Federal Register such determina- 
tion, whether affirmative or negative, together with a complete state- 
ment of findings and conclusions, and the reasons or bases therefor, on 
all the material issues of fact or law presented (consistent with con- 
fidential treatment granted by the Secretary or the Commission, as the 
case may be, in the course of making its determination) . 

(3) The hearings provided for under this section shall be exempt 
from sections 554, 555, 556, 557, and 702 of title 5 of the United States 
Code. The transcript of any hearing, together with all information 
developed in connection with the investigation (other than items to 
which confidential treatment has been granted by the Secretary or the 
Commission, as the case may be) , shall be made available in the man- 
ner and to the extent provided in section 552(b) of such title. 

SPECIAL DUMPING DUTY 

Sec. 202.* (a) In the case of all imported merchandise »vhether duti- 
able or free of duty, of a class or kind as to which the Secretary of the 
Treasury has made public a finding as provided for in section 201, 
entered, or withdrawn from warehouse, for consumption, not more 
than one hundred and twenty days before the question of dumping was 
raised by or presented to the Secretary or any person to whom author- 
ity under section 201 has been delegated, and as to which no appraise- 
ment has been made before such finding has been so made public, if 
the purchase price or the exporter's sales price is less than the foreign 
market value (or, in the absence of such value, than the constructed 
value) there shall be levied, collected, and paid, in addition to any 
other duties imposed thereon by law, a special dumping duty in an 
amount equal to such difference. 

(b)^ In determining the foreign market value for the purposes of 
subsection (a), if it is established to the satisfaction of the Secretary 
or his delegate that the amount of any difference between the purchase 
price and the foreign market value ("or that the fact that the purchase 

* Added by sec. 321(a) (2) of Public Law 93-618 (88 Stat. 1978 at 2044). 

» As amended and restated by sec. 302 of Public Law 83-768 (68 Stat. 1139). The phrase 
•'constructed value" replaced "cost production as a result of section 4(b) of Public Law 
85-630 (72 Stat. 585). Sec. 311 of the Customs Court Act of 1970 (Public Law 91-271) 
deleted a reference to an appraisement "report" in this section. 

•As amended and restated by sec. 2 of Public Law 85-630 (72 Stat. 583). 



Ill 

price is the same as the forei^ market vahie) is wholly or partly due 
to— 

(1) the fact that the wholesale quantities, in which such or sim- 
ilar merchandise is sold or, in the absence of sales, offered for sale 
for exportation to the United States in the ordinary course of 
trade, are less or are greater than the wholesale quantities in which 
such or similar merchandise is sold or, in the absence of sales, 
offered for sale in the principal markets of the country of expor- 
tation in the ordinary course of trade for home consumption (or, 
if not so sold or offered for sale for home consumption, then for 
exportation to countries other than tlie United States), 

(2) other differences in circumstances of sale, or 

(3) the fact that merchandise described in subdivision (C), 
(D), (E),or (F) of section 212 (3) is used in determining foreign 
market value, 

then due allowance shall be made therefor. 

(c) In determining the foreign market value for the purposes of 
subsection (a), if it is established to the satisfaction of the Secretary 
or his delegate that the amount of any difference between the export- 
er's sales price and the foreign market value (or that the fact that the 
exporter's sales price is the same as the foreign market value) is wholly 
or partly due to— 

(1) the fact that the wholesale quantities in which such or 
similar merchandise is sold or, in the absence of sales, offered 
for sale in the principal markets of the United States in the 
ordinary course of trade, are less or are greater than the wholesale 
quantities in which such or similar merchandise is sold or, in the 
absence of sales, offered for sale in the principal markets of the 
country of exportation in the ordinary course of trade for home 
consumption (or, if not so sold or offered for sale for home con- 
sumption, then for exportation to countries other than the I^'^nited 
States), 

other differences in circumstances of sale, or 
the fact that merchandise described in subdivision (C). 
(D), (E),or (F) of section 212(3) is used in determining foreign 
market value, 
then due allowance shall be made therefor. 

PUrtCHASE PRICE 

Sec. 203u^ For the purposes of this title, the purchase price of 
imported merchandise shall be the price at which such merchandise 
has been purchased or agreed to be purchased, prior to the time of 
exportation, by the person by whom or for whose account the mer- 
chandise is imported, plus, when not included in such price, the cost 
of all containers and coverings and all other costs, charges, and 

'As Amended and restated by sec. 321 (b> of Public Law 93-618 (88 Stat. 1978 at 2045). 
Snb«sectIon (tr) (2) of thnt section provided that : 

"The amendments made by subsections (b) throutrh (e) of this section shall apply with 
respect to all merchandise which Is not appraised on or before the date of the enactment 
of this Act : except that snch amendments shall not apply with respect to any merchandise 
which — 

(A) was exported from the country of exportation before such date of the enactment, 
and 

(B) is snMect to a flndlnc under the Antldumplne Act. 1921. which (!> Is ontstand- 
Ine on snch date of enactment, or (in was revoked on or before such date of enact- 
ment but la still applicable to such merchandise." 



(2f 
(3) 



112 

expenses incident to placing the merchandise in condition, packed 
ready for shipment to the United States, less the amount, if any, 
included m such price, attributable to any additional costs, charges, 
and expenses, and United States import duties, incident to bringing 
the merchandise from the place of shipment in the country of exporta- 
tion to the place of delivery in the United States ; and less the amount, 
if included in such price, of any export tax imposed by the country 
of exportation on the exportation of the merchandise to the United 
States; and plus the amount of any import duties imposed by the 
country of exportation which have been rebated, or which have not 
been collected, by reason of the exportation of the merchandise to the 
United States; and plus the amount of any taxes imposed in the 
country of exportation directly upon the exported merchandise or com- 
ponents thereof, which have been rebated, or which have not been 
collected, by reason of the exportation of the merchandise to the 
United States, but only to the extent that such taxes are added to or 
included in the price of such or similar merchandise when sold in the 
country of exportation ; and plus the amount of any taxes rebated or 
not collected, by reason of the exportation of the merchandise to the 
United States, which rebate, or noncollection has been determined by 
the Secretary to be a bounty or grant within the meaning of section 
803 of the Tariff Act of 1930. 

exporter's sales price 

Sec. 204.® For the purposes of this title, the exporter's sale price 
of imported merchandise shall be the price at which such merchandise 
is sold or agreed to be sold in the United States, before or after the 
time of importation, by or for the account of the exporter, plus, when 
not included in such price, the cost of all containers and coverings and 
nil other costs, charges, and expenses incident to placing the mer- 
chandise in condition, packed ready for shipment to the United States, 
less (1) the amount, if any, included in such price, attributable to any 
additional costs, charges, nnd expenses, and United States import 
duties, incident to bringing the merchandise from the place of ship- 
ment in the country of exportation to the place of delivery in the 
United States, (2) the amount of the commissions, if any, for selling 
in the United States the particular merchandise under consideration, 
(3) an amount equal to the expenses, if any, generally incurred by or 
for the account of the exporter in the United States in selling identi- 
cal or substantially identical merchandise, (4) the amount of any 
export tax imposed by the country of exportation on the exportation 
of the merchandise to the United States, and (5) the amount of any 
increased value, including additional material and labor, resulting 
from a process of manufacture or assembly performed on the imported 
merchandise after the importation of the merchandise and before its 
sale to a person who is not the exporter of the merchandise within 
the meaning of section 207; and plus the amount of any import duties 
imposed by the country of exportation which have been rebated, or 
which have not been collected, by reason of the exportation of the 
merchandise to the United States ; and plus the amount of any taxes 

• Ah amended and restated by sec. 321(c) of Public Law 93-618 (88 Stat. 1978 nt 2040). 
Roo footnote 7 for llmltntlons on applicability. 



113 

imposed in the country of exportation directly upon the exported mer- 
cliandise or components thereof, which have been rebated, or which 
have not been collected, by reason of the exportation of the merchan- 
dise to the United States, but only to the extent that such taxes are 
added to or included in the price of such or similar merchandise when 
sold in the country of exportation; ;\nd plus the amount of any taxes 
rebated, or not collected, by reason of the exportation of the mer- 
chandise to the United States, which rebate or noncollection has been 
determined by the Secretary to be a bounty or grant within the mean- 
ing of section 303 of the Tariff Act of 1930. 

FOREIGN MARKET VALUE 

Sec. 205. (a)® For the purposes of this title, the foreign market value 
(if imnorted merchandise shall be the price, at the time of exportation 
of such merchandise to the United States, at which such or similar mer- 
chandise is sold or, in the absence of sales, offered for sale in the 
principal markets of the country from which exported, in the usual 
wholesale quantities and in the ordinary course of trade for home con- 
sumption (or, if not so sold or offered for sale for home consumption, or 
i f the Secretary determines that the quantity sold for home consump- 
(ion is so small in relation to the quantity sold for exportation to coun- 
tries other than the United States as to form an inadequate basis for 
comparison, then the price at which so sold or offered for sale for ex- 
portation to countries other than the United States) , plus, when not in- 
cluded in such price, the cost of all containers and coverings and all 
other costs, charges, and expenses incident to placing the merchandise 
in condition packed ready for shipment to the United States, except 
that in the case of merchandise purchased or agreed to be purchased 
by the person by whom or for whose account the merchandise is im- 
ported, prior to the time of exportation, the foreign market value 
sliall be ascertained as of the date of such purchase or agreement to 
purchase. In tlie ascertainment of foreign market value for the pur- 
[)oses of this title no pretended sale or offer for sale, and no sale or 
nffer for sale intended to establish a fictitious market, shall be taken 
into account. If such or similar merchandise is sold or, in the absence 
of sales, offered for sale through a sales agency or other organization 
related to the seller in any of the respects described in section 207, the 
prices at which such or similar merchandise is sold or, in the absence 
ni sales, offered for sale by such sales agency or other organization 
may be used in determining the foreign market value. 

(b)^" Whenever the Secretary has reasonable grounds to believet 
or suspect that sales in the home market of the country of exportation, 
or, as appropriate, to countries other than the United States, have 
been made at prices which represent less than the cost of producing 
the merchandise in question, he shall determine whether, in fact, such 
sales were made at less than the cost of producing the merchandise. 
If the Secretary determines that sales made at less than cost of produc- 
tion (1) have been made over an extended period of time and in sub- 
stantial quantities, and (2) are not at prices which permit recovery of 

• As amended and restated by Sec. 3 of the Act of Aug. 14. 1958 (72 Stat. 584). 
»» Added by sec. 321 (d) of Public Law 93-618 (88 Stat. 1078 at 2046). See footnotn 7 
for limitations on applicability. 



114 

all costs within a reasonable period of time in the normal course of 
trade, such sales shall be disregarded in the determination of foreign 
market value. Whenever sales are disregarded by virtue of having been 
made at less than the cost of production and the remaining sales, made 
at not less than cost of production, are determined to be inadequate as 
a basis for the determination of foreign market value, the Secretary 
shall determine that no foreign market value exists and employ the 
constructed value of the merchandise in question. 

(c)^° If available information indicates to the Secretary that the 
economy of the country from which the merchandise is exported is 
state-controlled to an extent that sales or offers of sales of such or 
similar merchandise in that country or to countries other than the 
United States do not permit a determination of foreign market value 
under subsection (a), the Secretary shall determine the foreign mar- 
ket value of the merchandise on the basis of the normal costs, expenses, 
and profits as reflected by either — 

(1) the prices, determined in accordance with subsection (a) 
and section 202, at which such or similar merchandise of a non- 
state-controlled-economy country or countries is sold either (A) 
for consumption in the home market of that country or coun- 
tries, or (B) to other countries, including the United States; or 

(2) the constructed value of such or similar merchandise in a 
non-state-controlled-economy country or countries as determined 
under section 206. 

(d)^" Whenever, in the course of an investigation under this Act, 
the Secretary determines that — 

(1) merchandise exported to the United States is being pro- 
duced in facilities which are owned or controlled, directly or 
indirectly, by a person, firm, or corporation which also owns or 
controls, directly or indirectly, other facilities for the production 
of such or similar merchandise which are located in another 
country or countries ; 

(2) the sales of such or similar merchandise by the company 
concerned in the home market of the exporting country are non- 
existing or inadequate as a basis for comparison with the sales 
of the merchandise to the United States ; and 

(3) the foreign market value of such or similar merchandise 
produced in one or more of the facilities outside the country of 
exportation is higher than the foreign market value, or if there 
is no foreign market value, the constructed value, of such or sim- 
ilar merchandise produced in the facilities located in the country 
of exportation, 

lie shall determine the foreign market value of such merchandise by 
reference to the foreign market value at which such or similar mer- 
chandise is sold in substantial quatities by one or more facilities 
outside the country of exportation. The Secretary in making any 
determination under this paragraph, shall make adjustments for the 
difference between the costs of production (including taxes, labor, 
materials, and overhead) of such or similar merchandise produced in 
facilities outside the country of exportation and costs of production 
of such or similar merchandise produced in the facilities in the coun- 
try of exportation, if such diff'erences are demonstrated to his satis- 
faction. For the purpose of this subsection, in determining foreign 



115 

market value of sucli or similar merchandise produced in a country 
outside of the country of ex[)ortation, the Secretary shall determine 
its price at tlie time of exportation from the country of exportation 
and shall make any adjustments required by section 205(a) for the 
cost of all containers and coverings and all other costs, charges, and 
expenses incident to placing the merchandise in condition packed 
ready for shipment to the United States by reference to such costs in 
the country ot exportation. 

CONSTRUCTION VALUE 

Sec. 206." (a) For tlie purposes of this title, the constructed value of 
imported merchandise shall be the sum of — 

(1) the cost of materials (exclusive of any internal tax appli- 
cable in the country of exportation directly to such materials or 
their disposition, but remitted or refunded upon the exportation 
of the article in the production of which such materials are used) 
and of fabrication or other processing of any kind employed in 
producing such or similar merchandise, at a time preceding the 
date of exportation of the merchandise under consideration which 
would ordinarily permit the production of that particular mer- 
chandise in the ordinary course of business ; 

(2) an amount for general expenses and profit equal to that 
usually reflected in sales of merchandise of the same general 
class or kind as the merchandise under consideration which are 
made by producers in the country of exportation, in the usual 
wholesale quantities and in the ordinary course of trade, except 
that (A) the amount for general expenses shall not be less than 
10 per centum of the cost as defined in paragraph (1), and (B) 
the amount for profit shall not be less than 8 per centum of the 
sum of such general expenses and cost ; and 

(3) the cost of all containers and coverings of whatever na- 
ture, and all other expenses incidental to placing the merchandise 
under consideration in condition, packed ready for shipment to 
the United States. 

(b) For the purposes of this section, a transaction directly or in- 
directly between persons specified in any one of the paragraphs in 
subsection (c) of this section may be disregarded if, in the case of any 
element of value required to be considered, the amount representing 
that element does not fairly reflect the amount usually reflected in the 
market under consideration of merchandise of the same general class 
or kind as the merchandise under consideration. If a transaction is 
disregarded under the preceding sentence and there are no other 
transactions available for consideration, then the determination of the 
amount required to be considered shall be based on the best evidence 
available as to what the amount would have been if the transaction 
had occurred between persons not specified in any one of the para- 
graphs in subsection (c). 

(c) The persons referred to in subsection (b) are : 

(1) Members of a family, including brothers and sisters 
(whether by the whole or half blood), spouse, ancestors, and 
lineal descendants; 



116 

(2) Any officer or director of an organization and such organi 
zation ; 

(i^) Partners; 

(4) Employer and employee ; 

(5) Any person directly or indirectly owning, controlling, or 
holding with power to vote, 5 per centum or more of the outstand- 
ing voting stock or shares of any organization and such organiza- 
tion; and 

(6) Two or more persons directly or indirectly controlling, 
controlled by. or under common control with, any person. 

EXPORTER 

Sec. 207. That for the purposes of this title the exporter of imported 
merchandise shall be the person by whom or for whose account the 
merchandise is imported into the United States : 

(1) If such person is the agent or principal of the exporter, manu- 
facturer, or producer ; or 

(2) Tf such person owns or controls, directly or indirectly, through 
stock ownership or control or otherwise, any interest in the business of 
the exporter, manufacturer, or producer; or 

(3) Tf the exporter, manufacturer, or producer owns or controls, 
directly or indirectly, through stock ownership or control or otherwise, 
any interest in any business conducted by such person; or 

(4) If any person or persons, jointly or severally, directly or in- 
directly, through stock ownership or control or otherwise, own or con- 
trol in the aggregate 20 per centum or more of the voting power or 
control in the business carried on by the person by whom or for whose 
account the merchandise is imported into the United States, and also 
20 per centum or more of such power or control in the business of the 
exporter, manufacturor. or producer. 

OATHS AND BONDS ON ENTRY 

Sec. 208." That in the case of all imported merchandise, whether 
dutiable or free of duty, of a class or kind as to which tlie Secretary has 
made public a findin.of as provided in section 201, and delivery of 
which has not been made by the appropriate customs officer before such 
finding has been so made public, unless the person by whom or for 
whose account such merchandise is imported makes oath before such 
customs officer, under regulations prescribed by the Secretary, that he 
is not an exporter, or unless such person declares under oath at the 
time of entry, under regulations prescribed by the Secretary, the ex- 
porter's sales price of such merchandise, it shall be unlawful for such 
customs officer to deliver the merchandise until such person has made 
oath before such customs officer under regulations pio^cribed by the 
Secretary, that the merchandise has not been sold or agreed to be 
sold by such person, and has given bond to such cTistoms officer, under 
regulations prescribed by the Secretary, with sureties approved by 
such customs officer, in an amount equal to the estimated value of the 

" The functions of the offices of collector of customs and appraiser of merchandise were 
transferred to the Secretary of the Treasury under Reorpranlzntlon Plan No. 2fi of 1950 
(15 Fed, Reg. 4985). References to the "collector" or the "appraiser" In Sections 208, 
209, and 210 were amended to the "appropriate customs officer" or "such customs officer" 
hr Sections 312. .S13. and 314 of the Customs Courts Act of 1970 (Public Law 91-271). 



117 

merchandise, conditioned: (1) that he will report to such customs 
officer the exporter's sales price of the merchandise within 30 days 
after such merchandise has been sold or agreed to be sold in the United 
States, (2) that he will pay on demand from such customs officer the 
amount of special dumping duty, if any, imposed by this title upon 
such merchandise, and (3) that he will furnisn to such customs officer 
such information as may oe in his possession and as may be necessary 
for the ascertainment of such duty, and will keep such records as to 
the sale of such merchandise as the Secretary may by regulation 
prescribe. 

DUTIES OF APPRAISERS 

Sec. 209." That in the case of all imported merchandise, whether 
dutiable or free of duty, of a class or kind as to which the Secretary 
has made public a finding as provided in section 201, and as to whicn 
the appropriate customs officer has made no appraisement before such 
finding has been so made public, it shall be the duty of such customs 
officer, by all reasonable ways and means to ascertain, estimate, and 
appraise (any invoice or affidavit thereto or statement of constructed 
value to the contrary notwithstanding) the foreign market value or 
the constructed value, as the case may be, the purchase price, and the 
exporter's sales price, and any other facts which the Secretary may 
deem necessary for the purposes of this title. 

appeals and protests 

Sec. 210.*^ That for the purposes of this title the determination of 
the appropriate customs officer as to the foreign market value or the 
constructed value, as the case may be, the purchase price, and the ex- 
porter's sales price, and the action of such customs officer in assessing 
special dumping duty, shall have the same force and effect and be 
subject to the same ri^ht of protest, under the same conditions and 
subject to the same limitations; and the general appraisers, the Board 
of General Appraisers, and the Court of Customs Appeals shall 
have the same jurisdiction, powers, and duties in connection with such 
protests as in the case of appeals and protests relating to customs 
duties under existing law. 

DRAWBACKS 

Skc. 211. That the special dumping duty imposed by this title shall 
be treated in all respects as regular customs duties within the meaning 
of all laws relating to the drawback of customs duties. 

DEFTNinONS 

Sec. 212." For the purposes of this title — 

(1) The term "sold or, in the absence of sales, offered for sale" 
means sold or, in the absence of sales, offered — 
{A) to all purchasers at wholesale, or 
(B) in the ordinary course of trade to one or more selected 
purchasers at wholesale at a price which fairly reflects the 
market value of the merchandise. 



" Public Law 91-271 substituted references to the "appropriate customs officer or such 
customs offlrer" for referenco to the "collector" whenever appearluR herein. Sec. 4(b) of 
Public Law 85-630 strurk out "cost of production" and substituted "constructed value". 

" Added by aec. 5 of Public T^n w R5-630 (72 Stat. 686) . 



118 

without regard to restrictions as to the disposition or use of the 
merchandise by the purchaser except that, where such restrictions 
are found to affect the market value of the merchandise, adjust- 
ment shall be made therefor in calculating the price at which the 
merchandise is sold or offered for sale. 

(2) The term '^ordinary course of trade" means the conditions 
and practices which, for a reasonable time prior to the exporta- 
tion of the merchandise under consideration, have been normal in 
the trade under consideration with respect to merchandise of the 
same class or kind as the merchandise under consideration. 

(3)^* The term "such or similar merchandise" means merchan- 
dise in the first of the following categories in respect of which a 
determination for the purposes of this title can be satisfactorily 
made: 

(A) The merchandise under consideration and other mer- 
chandise which is identical in physical characteristics with, 
and was produced in the same country by the same person as, 
the merchandise under consideration. 

(B) Merchandise (i) produced in the same country and 
by the same person as the merchandise under consideration, 
(li) like the merchandise under consideration in component 
material or materials and in the purposes for which used, and 
(iii) approximately equal in commercial value to the mer- 
chandise under consideration. 

(C) Merchandise (i) produced in the same country and 
by the same person and of the same general class or kind as 
the merchandise under consideration, (ii) like the merchan- 
dise under consideration in the purposes for which used, and 
(iii) which the Secretary or his delegate determines may rea- 

. sonably be compared for the purposes of this title with the 

merchandise under consideration. 
(4) The term "usual wholesale quantities", in any case in which 
the merchandise in respect of which value is being determined is 
sold in the market under cousideratiou at different prices for dif- 
ferent quantities, means the quantities in which such merchandise 
is there sold at the price or prices for one quantity in an afircfregate 
volume which is greater than the aggregate volume sold at the 
price or prices for any other quantity. 

SHORT TITLE 

Sec. 213." That this title may be cited as the "Antidumping Act, 
1921." 

DEFINITIONS ^® 

Sec. 406. That when used in Title TT or Title ITT or in this title— 
The term "person" includes individuals, partnerships, corpo- 
rations, and associations: and 



"Amended by sec. 321(e) of Public I^w 93-618 (88 Stat. 1978 at 2048) which struck 
out subparajrraphs (B), (D). and (F) (applying the term to Identical merchandise pro- 
duced by another person) and which redesignated subparagraphs (C) and (E) as sub- 
paragraphs (B) and (C). respectively. 

" Renumbered by sec. 5 of the Act of Aug. 14, 1958 (72 Stat. 585). , , ,^^ ^^ ^ 

"Although the provisions of the Antidumping Act,, 1921, are contained in title II of 
the Act of May 27, 1921, sections 406 and 407 of title IV of that Act are applicable to 
the Antidumping Act, 1921. 



119 

The term "United Statos" includes all Territories and posses- 
sions subject to the jurisdirtion of tlie United States, except the 
Philippine Islands,^ ^ the Virgin Islands, the islands of Guam 
and Tutuila, and the Canal Zone. 

raiLES AND KK(;uLA'noNs 

Sec. 407. That the Secretaiy shall make rules and regulations neces- 
sary for the enforcement of this Act 



" The Independence of the Philippine Islands was recojrnlzed by the United States after 
(he (late of the enactment of the Act of May 27, 1921, thus the reference to the Philippine 
iRlandi in the definition of the term "United States" should be omitted. 



b. Administration of the Antidumping Act, 1921 

Title II of Public Law 90-634 [H.R. 17324], 82 Stat. 1345, approved October 24, 

1968 

TITLE II— ADMINISTKATION OF THE ANTIDUMPING 

ACT, 1921 

DETERMINATIONS UNDER THE ANTIDUMPING ACT, 1921 

Sec. 201.* (a) Nothing contained in the International Antidumping 
Code, signed at Geneva on June 30, 1967, shall be construed to restrict 
tlie discretion of the United States Tariff Commission in [)erforming 
its duties and functions under the Andidumping Act, 1921, and in per- 
forming their duties and functions under such Act the Secretary of the 
Treasury and the Tariff Commission shall — 

(1) resolve any conflict between the International Antidump- 
ing Code and the Antidumping Act, 1921, in favor of the Act as 
applied by the agency administering the Act, and 

(2) take into account the provisions of the International Anti- 
dumping Code only insofar as they are consistent with the Anti- 
dumping Act, 1921, as applied by the agency administering the 
Act 



' 19 TT.S.C. 160 note. 

(120) 



4. Export Administration 

a. The Export Administration Act of 1969, as amended ^ 

Public Law 91-184 [H.R. 4293], 83 Stat. 841, approved December 30, 1%9, as 
amended by Public Law 92-284 [S.J. Res. 218], 86 Stat. 133, approved April 29, 
1972; Public Law 92-412 [S. 3726], 86 Stat. 644, approved August 29. 1972; 
Public Law 93-327 [H.J. Res. 1057]. 88 Stat 287, approved June 30, 1974; Public 
Law 93-372 [H.J. Res. 1104], 88 Stat. 444, approved August 14, 1974; Public 
Law 93-500 [S. 3792], 88 Stat. 1552, approved October 29, 1974; and by Public 
Law 93-608 [H.R. 14718], 88 Stat. 1967, approved January 2, 1975; Public Law 
95-52 [H.R. 5840], 91 Stat. 235, approved June 22, 1977; and by Public Law 
95-223 [H.R. 7738 J, 91 Stat. 1625, approved December 28, 1977. 

AN ACT To provide for continuation of authority for regulation of exports. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 

8U0RT TITLE 

Section 1. This Act may be cited as the "Export Administration 
Act of 1969". 

FINDINGS 

Sec. 2. The Congress makes the following findings : 

(1) The availability of certain materials at home and abroad varies 
so that the quantity and composition of United States exports and 
their distribution among importing countries may affect the welfare 
of the domestic economy and may have an important bearing upon 
fulfillment of the foreign policy of the United States. 

(2) The unrestricted export of materials, information, and tech- 
nology without regard to whether they make a significant contribution 
to the military potential of any other nation or nations may adversely 
affect the national security of the United States. 

(3) The unwarranted restriction of exports from the United States 
has a serious adverse effect on our balance of payments, particularly 
when export restrictions applied by the United States are more exten- 
sive than export restrictions imposed by countries with which the 
United States has defense treaty commitments.^ 

(4) The uncertainty of policy toward certain categories of exports 
has curtailed the efforts of American business in those categories to 
the detriment of the overall attempt to improve the trade balance of 
the United States. 

(5) ^ Unreasonable restrictions on access to world supplies can cause 
worldwide political and economic instability, interfere with free inter- 
national trade, and retard the growth and development of nations. 

150 U.S.C. App. 2401-2413. This Act replaces the Export Control Act of 1949. 50 U.S.C. 
2021-2032 (1964). 

'The phrase bepinninp with "particnlarlv" was added by Sec. 102 of the Equal Export 
Opportunity Act (Public- Law 92-412). 

■'Section (o) was added by Sec 4(a) of Public Law 98-500 (88 Stat. 1552 at lo5?.). 

(121) 



20-594 O - 78 - 9 



122 



DECLARATION OF POLICY 



Sec. 3. The Congress makes the following declarations: 

(1) It is the policy of the United States both (A) to encourage trade 
with all countries with which we have diplomatic or trading relations, 
except those countries with which such trade has been determined by 
the President to be against the national interest, and (B) to restrict 
the export of goods and technology which would make a significant 
contribution to the military potential of any other nation or nations 
which would prove detrimental to the national security of the United 
States. 

(2) It is the policy of the United States to use export controls (A) 
to the extent necessary to protect the domestic economy from the 
excessive drain of scarce materials and to reduce the serious inflation- 
ary impact of foreign demand, (B) to the extent necessary to further 
significantly the foreign policy of the United States and to fulfill 
its international responsibilities, and (C) to the extent necessary 
to exercise the necessary vigilance over exports from the standpoint 
of their significance to the national security of the United States. 

(3) It is the policy of the United States (A) to formulate, refor- 
mulate, and apply any necessary controls to the maximum extent pos- 
sible in cooperation with all nations, and (B) to formulate a unified 
trade control policy to be observed by all such nations. 

(4) It is the policy of the United States to use its economic resources 
and trade potential to further the sound growth and stability of its 
economy as well as to further its national security and foreign policy 
objectives. 

(5) It is the policy of the United States (A) to oppose restrictive 
trade practices or boycotts fostered or imposed by foreign countries 
against other countries friendly to the United States or against any 
United States person,'* (B)^ to encourage and, in specified cases, to 
require United States persons engaged in the export of articles, mate- 
rials, supplies, or information to refuse to take actions, including 
furnishing information or entering into or implementing agreements, 
which have the effect of furthering or supporting the restrictive trade 
practices or boycotts fostered or imposed by any foreign country 
against a country friendly to the United States or against any United 
States person, (C)^ to foster international cooperation and the de- 
velopment of international rules and institutions to assure reasonable 
access to world supplies. 

(6) ^ It is the policy of the United States that the desirability of 
subjecting, or continuing to subject, particular articles, materials, or 
supplies, including technical data or other information, to United 
States export controls should be subjected to review by and consulta- 
tion with representatives of appropriate United States Government 
agencies and qualified experts from private industry. 

(7)^ It is the policy of the United States to use export controls 
including license fees, to secure the removal by foreign countries of 

* The words "or against any United States person" were added by Sec. 202(a) of the 
Export Administration Amendments of 1977 (91 Stat. 247). 

5 Subsection (B) was amended and restated bv Sec. 202(b) of the Export Adminis- 
tration Amendments of 1977 (91 Stat. 247). 

•Subsection (C) was added by Sec. 4(c)(2) of Public Law 93-500 (88 Stat. 1552 at 
1553). 

'Paragraph added by Sec. 103 of Public Law 92-442 (86 Stat. 644). 

« Paragraph 7 was added by Sec. 11 of Public Law 93-500 (88 Stat. 1552 at 1556). 



123 

restrictions on access to supplies where such restrictions have or may 
have a serious domestic inflationary impact, have caused or may cause 
a serious domestic shortao^e, or have been imposed for purposes of 
influencing the foreign policy of the United States. In effecting this 
policy, the President shall make every reasonable effort to secure the 
removal or reduction of such restrictions, policies, or actions through 
international cooperation and agreement before resorting to the impo- 
sition of controls on the export of materials from the United States: 
Provided, That no action taken in fulfillment of the policy set forth 
in this paragraph shall apply to the export of medicine or medical 
supplies. 

(8)^ It is the policy of the United States to use export controls to 
encourage other countries to take immediate steps to prevent the use 
of their territory or resources to aid, encourage, or give sanctuary to 
those persons involved in directing, supporting, or participating in 
acts of international terrorism. To achieve this objective, the President 
shall make every reasonable effort to secure the removal or reduction 
of sucli assistance to international terrorists through international 
cooperation and agreement before resorting to the imposition of export 
controls. 

AUTHORITY 

Sec. 4. (a)(1) The Secretary of Commerce shall institute such 
organizational and procedural cnanges in any office or division of the 
Department of Commerce which has heretofore exercised functions 
relating to the control of exports and continues to exercise such con- 
trols under this Act as he determines are necessary to facilitate and 
effectuate the fullest implementation of the policy set forth in this 
Act with a view to promoting trade with all nations with which the 
United States is engaged in trade, including trade with (A) those 
countries or groups of countries with which other countries or groups 
of countries having defense treaty commitments with the United 
States have a significantly larger percentage of volume of trade than 
does the United States, and (B) other coimtries eligible for trade 
with the United States but not significantly engaged in trade with the 
United States. In addition, the Secretary shall review any list of 
articles, materials or supplies, including technical data or other in- 
formation, the exportation of which from the United States, its terri- 
tories and possessions, was heretofore prohibited or curtailed with a 
view to making promptly such changes and revisions in such list as 
may be necessary or desirable in furtherance of the policy, purposes, 
and provisions of this Act. The Secretary shall include a detailed 
statement with respect to actions taken in compliance with the pro- 
visions of this paragraph in the second quarterly report (and in any 
subsequent report with respect to actions taken during the preceding 
quarter) made by him to the Congress after the date of enactment of 
this Act nursuant to section 10. 

(2) Tlie Secretary of Commerce shall use all practicable means 
available to him to keep the business sector of the Nation fully 
apprised of changes in export control policy and procedures instituted 
in conformity with this Act with a view to encouraging the widest 
possible trade. 

8 Paragraph (8) was added by Sec. 115 of the Export Administration Amendmenta of 
1977 (91 Stat. 241). 



124 

(b) (1) To effectuate the policies set forth in section 3 of this Act, 
the President may prohibit or curtail the exportation, except under 
such rules and regulations as he shall prescribe, of any articles, mate- 
rials, or supplies, including technical data or any other information, 
subject to the jurisdiction of the United States or exported by any 
person subject to the jurisdiction of the United States.^" To the ex- 
tent necessary to achieve effective enforcement of this Act, these rules 
and regulations may apply to the financing, transporting, and other 
servicing of exports and the participation therein by any person. ^^ In 
curtailing the exportation of any articles, materials, or supplies to 
effectuate the policy set forth in section 3(2) (A) of this Act, the 
President is authorized and directed to allocate a portion of export 
licenses on the basis of factors other than a prior history of expor- 
tation.^^ 

(2)^^ (A) In administering export controls for national security 
purposes as prescribed in section 3(2) (C) of this Act, United States 
policy toward individual countries shall not be determined exclusively 
on the basis of a country's Communist or non-Communist status but 
shall take into acocunt such factors as the country's present and poten- 
tial relationship to the United States, its present and potonial rela- 
tionship to countries friendly or hostile to the United States, its ability 
and willingness to control retransfers of United States exports in 
accordance with United States policy, and such other factors as the 
President may deem appropriate. The President shall periodically 
review United States policy toward individual countries to determine 
whether such policy is appropriate in light of factors specified in 
the preceding sentence. The results of such review, to.o:ether with the 
justification for United States policy in light of such factors, shall be 
reported to Congress not later than December 31, 1978, in the semi- 
annual report of the Secretary of Commerce required by section 10 
of this Act, and in every second such report thereafter. 

(B) Rules and regulations under this subsection may provide for 
denial of any request or application for authority to export articles, 
materials, or supplies, including technical data or any other informa- 
tion,^'* to any nation or combination of nations threatening the national 



10 This sentence was amended and restated by Sec. 301(a) of Public Law 95-223 (91 
Stat. 1629). 

"Sec. 103(a)(1) of tlie Export Administration Amendments of 1977 (91 Stat. 235) 
struck out the third sentence of subsection (b)(1). Sec. 201(b) of the same Act (91 Stat. 
246) further amended subsection (b)(1) by striking out the next to the last sentence. 
These sentences formerly read as follows : 

"Rules and regulations may provide for denial of any request or application for authority 
to export articles, materials, or supplies, including technical data, or any other information, 
from the United States, its territories and possessions, to any nation or combination of 
nations threatening the national security of the United States if the President determines 
that their export would prove detrimental to the national security of the United States 
regardless of their availabilitv from nations other than any nation or combination of 
nations threatening the national security of the United States, but whenever export licenses 
are required on the ground that considerations of national security override considerations 
of foreign availability, the reasons for so doing shall be reported to the Congress in the 
quarterly report following the decision to reouire such licenses on that ground to the extent 
consideration of national security and foreign policy permit. The rules and regulations 
shall implement the provisions of section 3(5) of this Act and shall require that all domes- 
tic concerns receiving requests for the furnishing of information or the signing of agree- 
inents as specified in that section must report this fact to the Secretary of Commerce for 
such action as he mav deem appropriate to carrv out the purpose of that section." 

12 The last sentence of Sec. 4(b)(1) was added by Sec. 12 of Public Law 93-500 (88 

"Paragraphs (2), (3). and (4), as added bv Sec. 104 of Public Law 92-412 (86 Stat. 
044) were struck out by Sec. 10'3(a) of the Export Administration Amendments of 1977 (91 
Stat. 235), which then inserted a new paragraph (2). . ,. , 

i*The words "from the United States, its territories and possessions, which previ- 
ously appeared at this point, were struck out by Sec. 301(b)(1) of Public Law 9o-Z^6 
(91 Stat. 1629). 



125 

security of the United States if the President determines tliat their 
export would prove detrimental to the national security of the I 'nited 
States. The President shall not impose expoit controls for national 
security purposes on the export ^•' of articles, materials, or supplies, 
including technical data or other information, which he determines 
are available without restriction from sources outside the United 
States in sitrnificant quantities and comparable in quality to those 
which would be subject to such controls,^*"' unless the President deter- 
mines that adecjuate evidence has been presented to him demonstrating 
that the absence of such controls would prove detrimental to the na- 
tional security of the United States. The nature of such evidence shall 
be included in the semiannual report required by section 10 of this 
Act. Where, in accordance with this paragraph, export controls are 
imposed for national security purposes notwithstanding foreign avail- 
ability, the President shall take steps to initiate negotiations with the 
governments of the appropriate foreign countries for the purpose of 
eliminating such availability. 

(c)^^ (1) To effectuate the policy set forth in section 3(2) (A) of this 
Act, the Secretary of Commerce shall monitor exports, and contracts 
for exports, of any article, material, or supply (other than a commodity 
which is subject to the reporting requirements of section 812 of the 
Agricultural Act of 1970) when the volume of such exports in rela- 
tion to domestic supply contributes, or may contribute, to an increase 
in domestic prices or a domestic shortage, and such price increase or 
shortage has, or may have, a serious adverse impact on the economy 
or any sector thereof. Such monitoring shall commence at a time 
adequate to insure that data will be available which is sufficient to 
permit achievement of the policies of this Act.^^ Information which 
the Secretary requires to be furnished in effecting such monitoring 
shall be confidential, except as provided in paragraph (2) of this 
subsection and in the last two sentences of section 7(c) of this Act.^^ 

(2) The results of such monitoring shall, to the extent practicable, 
be aggregated and included in weekly reports setting forth, with re- 
spect to each article, material, or supply monitored, actual and antici- 
pated exports, the destination by country, and the domestic and world- 
wide price, supply, and demand. Such reports may be made monthly 
if the Secretary determines that there is insufficient information to 
justify weekly reports. 

(d)-^ Xothinir in this Act, or in the rules and regulations hereunder 
shall be construed to require authority or permission to export, except 

'"The words "from the United States", which previously appeared at this point, were 
struck out hv Sec. .'^01 (b) (It (P.) of Public T,aw f)o-223 (Ul Stat. 1620). 

i« Sec. 301(b) (1)(R) of Public law nr)-223 (01 Stat. 1020) inserted the words -which 
would be sub.iect to such controls" in lieu of "pro'iured in the Ignited States". 

" S"bsection (c) was added by Sec. 3(a) of Public Law 03-500 (RS Stat. lf)o2). Public 
Law 03-500 also redeslernated subsections (c) through (e) of Section 4 as subsection (d) 
throuf^b (f). resnectlvely. 

" This ."sentence was added by Sec. 104 of the Export Administration Amendments of 
1977 ^01 St't. 237). 

"The words "and in the last two sentences of section 7(c) of this Act" were added 
by Sec. 113 fb^ of the Evport Afiminis^ration Amendmpnts of 1077 (01 Stat. 2^1). 

'0 Subsection (d) was amended hv Sec. 7 of Public Law 03-500 (88 Stat. 1552 at 1554). 
This ^u^^sectl'^n formerly rend as foil ws • 

"Xothlntr in this .\ct. or in the rules and retrulations autborl7ed by it. shall in any way 
he construed to renuire authority and permission to export articles, materials, sunnlles. 
data or Information except where the national security, the forelcn policy of the United 
States, or the need to protect the domestic economy from the excessive drain of scarce ma- 
terials makes such requirement necessary." 



126 

where required b}' the President to effect the policies set forth in 
section 3 of this Act. 

(e) The President may delegate the power, authority, and discre- 
tion conferred upon him by this Act to such departments, agencies, or 
officials of the Government as he may deem appropriate. 

(f)-^ (1) The authority conferred by this section shall be exercised 
with respect to any agricultural commodity, including fats and oils 
or animal hides or skins, without the approval of the Secretary of 
Agriculture. The Secretarv' of Agriculture shall not approve the exer- 
cise of such authority with respect to any such commodity during nny 
period for which the supply of such commodity is determined by him 
to be in excess of the requirements of the domestic economy, except 
to the extent the President determines that such exercise of authority 
is required to effectuate the policies set forth in clause (B) or (C) of 
paragraph (2) of section 3 of this Act. 

(2)" Upon approval of the Secretarj^ of Commerce, in consulta- 
tion with the Secretary of Agriculture, agricultural commodities pur- 
chased by or for use in a foreign countrv^ may remain in the United 
States for export at a later date free from any quantitative limita- 
tions on export which may be imposed pursuant to section 3(2) (A) of 
this Act subsequent to such approval. The Secretary of Commerce may 
not grant ap]>roval hereunder unless he receives adequate assurance 
and, in conjunction with the Secretary of Agriculture, finds that such 
commodities will eventually be exported, that neither the sale nor 
export thereof will result in an excessive drain of scarce materials and 
have a serious domestic inflationary impact, that storage of such com- 
modities in the United States will not unduly limit the space available 
for storage of domestically owned commodities, and that the purpose 
of such storage is to establish a reserve of such commodities for later 
use. not including resale to or use by another country. The Secretary of 
Commerce is autliorized to issue such rules and regulations as may be 
necessary to implement this paragraph. 

(3)" If the authority conferred by this section is exercised to pro- 
hibit or curtail the exportation of any agricultural commodity in order 
to effectuate the policies set forth in clause (A) or (B) of paragraph 
(2) of section 3 of this Act, the President shall immediately report 
such prohibition or curtailment to the Congress, setting forth the rea- 
sons therefor in detail. If the Congress, within 30 days after the date 
of its receipt of such report, adopts a concurrent resolution disapprov- 
ing such prohibition or curtailment, then such prohibition or curtail- 

2^ As amended by Sec. 104(b)(1) of Public Law 91-412. Sec. 4(e) of the Act (redesig- 
nated Sec. 4(f) by Public Law 93-500) formerly read : 

"The authority conferred by this .section shall not be exercised with respect to any 
agricultural commodity. Including fats and oils, during any period for which the supply 
of such commodity is determined by the Secretary of Agriculture to be in excess of the 
reouirements of the domestic economy, except to the extent required to effectuate the 
pol'cies set forth In clanse (B) or (C) of paragraph (2) of section 3 of this Act." 

Sec. 104(b) (2) of Public Law 92-412 also nrovided that : 

"Any rule, regulation, nroclamation. or order issued after Julv 1. 1972. under section 
4 of the Export Administration Act of 1969. exercising any authority conferred by such 
section with respect to any agricultural commodity, including fats and oils or an'mal 
hides or skins, shall cease to be effective upon the date of enactment of this Act." (.Vu- 
-eust 29. 1972.) 

"Paragraph (2) was added bv Sec. 105(2) of the Export Administration Amendments 
of 1977 (91 Stat. 237). 

"Paragraph (3) was added bv Sec. 106 of the Export Administration Amendments of 
1977 (91 Stat. 238). 



127 

ment shall ceaso to Ix* effective with the adoption of such resolution. 
In the computation of such :^0-day period, there shall be excluded the 
days on which either House is not in session l)ecause of an adjournment 
of more than »i days to a day certain or because of an adjournment of 
the Con^T^ss sine die. 

(g)=*(l) It is the intent of Confess that any ex{X)rt license applica- 
tion required under this Act shall be approved or disapproved within 
90 days of its receipt. Upon the expiration of the 90-day period l>e^in- 
ning: on the date of its receipt, any export license application required 
under this Act which has not been approved or disapproved shall Ix* 
deemed to be approved and the license shall l>e issued unless the Secre- 
tary of Commerce or other official exercisincj authority under this 
Act finds that additional time is required and notifies the applicant 
ill writing of the si>ecific circumstances re(|uirinij such additional time 
and the estimated date when the decision will be made. 

(2) (A) Wth resj^ect to any export license application not finally 
approved or disapproved within 90 days of its receipt as provided in 
para<rn^ph (1) of this subsection, the applicant shall, to the maximum 
extent consistent with the national security of the United States, be 
specifically informed in writing of questions raised and negative con- 
siderations or recommendations made by any agency or department 
of the Government with resjXHi't to such license application, and shall 
be accorded an opportunity to respond to such questions, considera- 
tions, or recommendations in writing prior to final approval or disap- 
proval by the Secretary of Commerce or other official exercising 
authority under this Act. In making such final approval or disap- 
proval, the Secretary- of Commerce or other official exercising author- 
ity under this Act shall take fully into account the applicant's response. 

(B) Whenever the Secretary- determines that it is necessary to 
refer an exp>ort license application to an interagency review process 
for approval, he shall first, if the applicant so requests, provide the 
applicant with an opportunity to review any documentation to he 
submitted to such process for the purpose of describinor the ex^wrt in 
question, in order to determine whether .such documentation accurately 
describes the proposed exp)ort. 

(3) In any denial of an export license application, the applicant 
shall lie informed in writing of the specific statutory basis for such 
denial. 

(h)^"* (1) The Congress finds that the defense posture of the United 
States may be seriously compromised if tlie Nation's goods and tech- 
nolog>- are exported to a controlled country -^ without an adequate and 
knowledsreable asses5=ment being made to determine whether export of 

« Sahsection (jr). «5 oriel naUr added by Sec. 5(a) of Public Law 93-500 (S8 Stat. 155.*?). 
iras amended and restated bv Sec. 107 of the E^xrort Administration Amendments of 1977 
C91 Stat- 2.?S> Subsection ic) formerlv read as foUnws : 

*Ve> Any export license apnlication rcmired bv the exercise of authority under this 
Act t'-> effe<-tnate the rn^llcies of section " V > V. ^ o- n ^ ■ C\ shall be apnroved or disap- 
proved not Hter than 90 days after its -n^l time is reonired. the Sec- 
retary of Commerce or other official e^ 'er this Act shall Inform the 

annlicant of the circumstances requiri:... . :::ne and ffive an estimate of 

when his decision will be made.'" 

= Subsection «h> was adf'ed br Sec. 9 of Public Law 9-^500 (SS Stj.t. i^^2 at l.'."»."»). 

"Sec. 10.'?(bWl) of the Export Adm'^'^"-"*^ -^^ \ r„..n.^ t.,..„t^ .-wf io-t .oi <t<.f Cf?6) 
prorid<*s that the words "controlled c the 

words •"countrv t** which eTpi-»rts are r- ~ • (^t. 

Sec. 103(bM4) of the same .^ct sne^ifi,^- ...> .... .,;. <,.,.. , > .^,..,. . . . rive 

nntil the end of a 90 dav period foUowinj: the receint bv Coneress of the report required 
by Sec. 4(bW2> above. This report is not due until December 31. 1978. 



128 

such goods and technology will make a significant contribution to the 
military potential of suchcountry.^^ It is the purpose of this subsection 
to provide for such an assessment and to authorize the Secretary of 
Defense to review any proposed export of goods or technology to any 
such country and, whenever he determines that the export of such goods 
or technology will make a significant contribution, which would prove 
detrimental to the national security of the United States, to the mili- 
tary potential of any such country ,2^ to recommend to the President 
that such export be disapproved. 

(2) Notwithstanding any other provision of law, the Secretary of 
Defense shall determine, iii consultation with the export control office 
to which licensing requests are made, the types and categories of trans- 
actions which should be reviewed by him to carry out the purpose of 
this subsection. Whenever a license or other authority is requested 
for the export of such goods or technology to any controlled country ,2® 
the appropriate export control office or agency to whom such request 
is made shall notify the Secretary of Defense of such request, and such 
office may not issue any license or other authority pursuant to such 
request prior to the expiration of the period within which the President 
may disapprove such export. The Secretary of Defense shall carefully 
consider all notifications submitted to him pursuant to this subsection 
and, not later than 30 days after notification of the request shall — 

(A) recommend to the President that he disapprove any 
request for the export of any goods or technology to any con- 
trolled ^^ country if he determines that the export of such goods 
or technology will make a significant contribution, which would 
prove detrimental to the national security of the United States, 
to the military potential of such country or any other country ; ^^ 

(B) notify such office or agency that he will interpose no 
objection if appropriate conditions designed to achieve the pur- 
poses of this Act are imposed ; or 

(C) indicate that he does not intend to interpose an objection 
to the export of such goods or technology. 

If the President notifies such office or agency, within 30 days after 
receiving a recommendation from the Secretary, that he disapproves 
Tjuch export, no license or other authorization may be issued for the 
export of such goods or technology to such country. 

(3) Whenever the President exercises his authority under this sub- 
section to modify or overrule a recommendation made by the Secretary 
of Defense pursuant to this section, the President shall submit to the 
Congress a statement indicating his decision together with the recom- 
mendation of the Secretary of Defense. 

27 Sec. 103(c)(1) of the Export Administration Amendments of 1977 (91 Stat. 236) 
struck out the words "significantly increase the military capability of such country" 
which had previously appeared at this point and inserted the words "make a signficant 
contribution to the military potential of such country". 

28 Sec. 103(c) of the Export Administration Amendments of 1977 (91 Stat. 236) struck 
out the words "significanctly increase the military capability of such country" which had 
previously appeared at this point, and inserted the words beginning with "make a signifi- 
cant contribution . . .". 

» Sec. 103(b)(2) of the Export Administration Amendments of 1977 (91 Stat. 236) 
provides that the word "controlled" should be struck and replaced by the word "such". 
However, for effective date of this amendment, see footnote 26 on page 127. 



129 

(4) As used in this subsection — 

(A) the term ''gooils or technolo^^-' means — 

(i) machinery, equipment, capital goods, or computer soft- 
ware; or 

(ii) any license or other arrangement for the use of any 
patent, trade secret, design, or plan with respect to any item 
descril)ed in clause (i) ; 

(B) the term ''export control office" means any office or agency 
of the United States (jovernment whose approval or permission is 
required pursuant to existing law for the export of goods or tech- 
nology: and 

(C)^° the term "controlled country" means any Communist 
country as defined under section 620(f) of the Foreign Assistance 
Act of 1961. 

(i)^^ In imi>osing export controls to effectuate the policy st<ited in 
section 3(2) (A) of this Act, the President's authority shall include 
but not he limited to. the imposition of export license fees. 

(j)^- Petreloum products refined in Ignited States Foreign-Trade 
Zones, or in the United States Territon' of Guam, from foreign crude 
oil shall be excluded from any quantitatiye rCvStrictions imposed pur- 
suant to section 8(2) (A) of this Act, except that, if the Secretary of 
Commerce finds that a product is in short sup]:)ly, the Secretary of 
Commerce may issue such rules and regulations as may be necessary 
to limit exports. 

(k)" (1) Notwithstanding any other proyision of this Act, no 
horse may be exported by sea from the Ignited States, its territories and 
possessions, unless such horse is part of a consignment of horses with 
respect to which a waiyer has been granted under paragraph (2) of 
this subsection. 

(2) The Secretary of Commerce, in consultation with the Secre- 
tary of Agriculture, may issue rules and regulations proyiding for the 
granting of waiyers permitting the export by sea of a specified con- 
signment of horses, if the Secretary of Commerce, in consultation with 
the Secretar}^ of Agriculture, determines that no horse in that consign- 
ment is being exported for pui-poses of slaughter. 

(1)^* (1) Notwithstanding any other provision of this Act and not- 
withstanding subsection (u) of section 28 of the Mineral Leasing Act 
of 1920. no domestically produced crude oil transported by pipeline 
over rights-of-way granted pursuant to such section 28 (except any 
such crude oil which (A) is exchanged in similar quantity for con- 
venience or increased efficiency of transportation with persons or the 
goyernment of an adjacent foreign state, or (B) is temporarily ex- 
ported for conyenience or increased efficiency of transportation across 
parts of an adjacent foreign state and reentei*s the United States) may 
be exported from the United States, its territories and possessions. 



»Sec. 103(b)(3) of the Export Administration Amendments of 1977 (91 Stat. 236) 
provides that clause (C) should be struck. However, for effective date of this amend- 
ment, see footnote 26 on page 127. 

»^ Subsection (1) was added by Sec. 10 of Public Law 93-500 (88 Stat. 1552 at 1556). 

^ Subsection (j) was added bv Sec. 108 of the Export Administration Amendments of 
1977 (91 Stat. 239). 

=° Subsection (k) was added bv Sec. 100 of the Export Administration Amendments of 
1977 (91 Stat. 239). 

'^ Subsection (1> was added by Sec. 110 of the Export Administration Amendments of 
1977 (91 Stat. 239). 



130 

during the 2-year period beginning on the date of enactment of this 
subsection unless the requirements of paragraph (2) of this subsection 
are met. 

(2) Crude oil subject to the prohibition contained in paragraph (1) 
may be exported only if — 

(A) the President makes and publishes an express finding that 
exports of such crude oil — 

(i) will not diminish the total quantity or quality of petro- 
leum available to the United States, 

(ii) will have a positive effect on consumer oil prices by de- 
creasing the average crude oil acquisition costs of refiners, 

(iii) will be made only pursuant to contracts which may 
be terminated if the petroleum supplies of the United States 
are interrupted or seriously threatened, 

(iv) are in the national interest, and 

(v) are in accordance with the provisions of this Act; and 

(B) the President reports such findings to the Congress as an 
energy action (as defined in section 551 of the Energy Policy and 
Conservation Act) . 

The congressional review provisions of such section 551 shall apply to 
an energy action reported in accordance with this paragraph, except 
that for purposes of this paragraph, any reference in such section to 
a period of 15 calendar days of continuous session of Congress shall 
be deemed to be a reference to a period of 60 calendar days of con- 
tinuous session of Congress and the period specified in subsection 
(f ) (4) (A) of such section for committee action on a resolution shall 
be deemed to be 40 calendar days. 

FOREIGN BOYCOTTS 

Sec. 4A.^^ (S') (1) For the purpose or implementing the policies set 
forth in section 3(5) (A) and (B), the President vshall issue rules 
and regulations prohibiting any United States person, with respect 
to his activities in the interstate or foreign commerce of the United 
States, from taking or knowingly agreeing to take any of the following 
actions with intent to comply with, further, or support any boycott 
fostered or imposed by a foreign country against a country which is 
friendly to the United States and which is not itself the object of any 
form of boycott pursuant to United States law or regulation : 

(A) Refusing, or requiring any other person to refuse, to do 
business with or in the boycotted country, with any business con- 
cern organized under the laws of the boycotted country, with any 
national or resident of the boycotted country, or with any other 
person, pursuant to an agreement with, a requirement of, or a 
request from or on behalf of the boycotting country.* The mere 
absence of a business relationship with or in the boycotted coun- 
try, with any business concern organized under the laws of the 
boycotted country, with any national or resident of the boycotted 
country, or with any other person, does not indicate the existence 
of the intent required to establish a violation of rules and regula- 
tions issued to carry out this subparagraph. 



35 Sec. 201(a) of the Export Administration Amendments of 1977 (91 Stat. 244) re- 
designated Sec. 4A as Sec. 4B and added this new Sec. 4A. 



131 

(B) Refusing, or requirino^ any other person to refuse, to 
employ or otherwise (liscriniinatin<; a^^ainst any United States 
person on the basis of race, religion, sex, or national origin of that 
person or of any owner, officer, director, or employee of such 
person. 

(C) Furnishing information with respect to the race, religion, 
sex, or national origin of any United States person or of any 
owner, officer, director, or employee of such person. 

(D) Furnishing information about whether any person has, 
has had, or proposes to have any business relationship (including 
a relationship by way of sale, purchase, legal or commercial rep- 
resentation, shipping or other transport, insurance, investment, 
or supply) with or in the boycotted country, with any business 
concern organized under the laws of the boycotted country, with 
any national or resident of the boycotted country, or with any 
other person which is known or believed to be restricted from 
haying any business relationship with or in the Ix^ycotting coun- 
try. Nothing in this paragraph shall prohibit the furnishing of 
normal business information in a commercial context as defined 
by the Secretary of Commerce. 

(E) Furnishing information about whether any person is a 
member of, has made contributions to, or is otherwise associated 
with or involved in the activities of any charitable or fraternal 
organization which supports the boycotted country. 

(F) Payino:, honoring, confirming, or otherwise implement- 
ing a letter of credit which contains any condition or requirement 
compliance with which is prohibited by rules and regulations 
issued pursuant to this paragraph, and no United States person 
shall, as a result of the application of this paragraph, be obligated 
to pay or otherwise honor or implement such letter of credit. 

(2) Rules and regulations issued pursuant to paragraph (1) shall 
provide exceptions for — 

(A) complyintr or agreeing to comply with requirements (i) 
prohibiting the import of goods or services from the boycotted 
country or goods produced or services provided by any business 
concern organized uhder the laws of the boycotted country or by 
nationals or residents of the boycotted country, or (ii) prohibiting 
the shipment of goods to the boycotting country on a carrier of the 
boycotted country, or by a route other than that prescribed by the 
boycotting country or the recipient of the shipment; 

(B) complying or agreeing to comply with import and ship- 
ping document requirements with respect to the country of origin, 
the name of the carrier and route oiP shipment, the name of the 
supplier of the shipment or the name of the provider of other 
services, except that no information knowingly furnished or con- 
veyed in response to such requirements may be stated in negative, 
blacklisting, or similar exclusionary terms after the expiration of 
1 year followin<r the date of enactment of the Export Adminis- 
tration Amendments of 1977 ^^ other than with respect to carriers 
or route of shipment as may be permitted by such rules and regu- 
lations in order to comply with precautionary requirements pro- 
tecting against war risks and confiscation ; 

"•Jiiue 22. 1978. 



132 

(C) complying or agreeing to comply in the normal course of 
business with the unilateral and specific selection by a boycotting 
country, or national or resident thereof, of carriers, insurers, sup- 
pliers of services to be performed within the boycotting country 
or specific goods which, in the normal course of business, are 
identifiable by source when imported into the boycotting country ; 

(D) complying or agreeing to comply with export require- 
ments of the boycotting country relating to shipments or trans- 
shipments of exports to the boycotted country, to any business 
concern of or organized under the laws of the boycotted country, 
or to any national or resident of the boycotted country ; 

(E) compliance by an individual or agreement by an individ- 
ual to comply with the immigration or passport requirements of 
any country with respect to such individual or any member of 
such individual's family or with requests for information regard- 
ing requirements of employment of such individual within the 
boycotting country ; and 

(F) compliance by a United States person resident in a foreign 
country or agreement by such person to comply with the laws of 
that country with respect to his activities exclusively therein, and 
such rules and regulations may contain exceptions for such resi- 
dent complying with the laws or regulations of that foreign coun- 
try governing imports into such country of trademarked, trade- 
named, or similarly specifically identifiable products or compo- 
nents of products for his own use, including the performance of 
contractual services within that country, as may be defined by 
such rules and regulations. 

(3) Rules and regulations issued pursuant to paragraphs (2) (C) 
and (2) (F) shall not provide exceptions from paragraphs (1)(B) 
and (1)(C). 

(4) Nothing in this subsection may be construed to supersede or 
limit the operation of the antitrust or civil rights laws of the United 
States. 

(5) Rules and regulations pursuant to this subsection shall be issued 
not later than 90 days after the date of enactment of this section and 
shall be issued in final form and become effective not later than 120 
days after they are first issued, except that (A) rules and regulations 
prohibiting negative certification may take effect not later than 1 
year after the date of enactment of this section, and (B) a grace period 
shall be provided for the application of the rules and regulations issued 
pursuant to this subsection to actions taken pursuant to a written con- 
tract or other agreement entered into on or before May 16, 1977. Such 
grace period shall end on December 31, 1978, except that the Secre- 
tary of Commerce may extend the grace period for not to exceed 1 
additional year in any case in which the Secretary finds that good 
faith efforts are being made to renegotiate the contract or agreement 
in order to eliminate the provisions which are inconsistent with the 
rules and regulations issued pursuant to paragraph (1). 

(6) This Act shall apply to any transaction or activity undertaken, 
by or through a United States or other person, with intent to evade 
the provisions of this Act ps implemented by the rules and reoriilations 
issued pursuant to this subsection, and such rules and regulations shall 



133 

expressly provide that the exceptions set forth in paragraph (2) shall 
not permit activities or agreements (expressed or implied by a course 
of conduct, including a pattern of re.si)onses) otherwise prohibited, 
which are not witliin the intent of such exceptions. 

(b) (1) In addition to the niles and re^rulations issued pursuant to 
subsection (a) of this section, rules aiul reirulations issued under 
section 4(b) of this Act shall implement the policies set forth in 
section 3(5). tt • o 

(2) Such rules and rejrulations shall require that any United States 
person receivinfr a request for the furnishing of information, the 
enterintr into or im])lementino: of afrrcpnients, or the taking of any 
other action referred to in section 3(5) shall report that fact to the 
Secretary of Commerce, toother with such other information con- 
cerning: such request as the Secretary may require for such action as he 
may deem appropriate for carrying out the policies of that section. 
Such |:>erson shall also report to the Secretary of Commerce whether 
he intends to comply and whether he has complied w^ith such request. 
Any report filed pursuant to this paragraph after the date of enact- 
ment of this section shall be made available promptly for public 
inspection and copying, except that information regarding the quan- 
tity, description, and value of any articles, materials, and supplies, 
including technical data and other information, to which such report 
relates may be kept confidential if the Secretary determines that dis- 
closure thereof would place the ITnited States person involved at a 
competitive disadvantage. The Secretary of Commerce shall peri- 
odically transmit summaries of the information contained in such 
reports to the Secretarv of Stnte for such action as tlie Secretary of 
State, in consultation with the Secretary of Commerce, mav deem 
appropriate for carrying out the policies set forth in section 3(5) of 
this Act. 

PROCEDURES FOR HARDSHIP RELIEF FROM EXPORT CONTROLS 

Sec. 4B.^^ (a) Anv person who, in his domestic manufacturing proc- 
ess or other domestic business operation, utilizes a product produced 
abroad in whole or in part from a commodity historically obtained 
from the ITnited States but which has been made subject to export con- 
trols, or anv person who historicallv has exported such a commodity, 
may transmit a petition of hardship to the Secretary of Commerce 
requesting an exemption from such controls in order to alleviate any 
unique hardship resulting from the imposition of such controls. A peti- 
tion under this section shall be in such form as the Secretary of Com- 
merce shall prescribe and shall contain information demonstrating the 
need for the relief requested. 

(b) Not later than 30 days after receipt of any petition under sub- 
section (a), the Secretai-y of Commerce shall transmit a written deci- 
sion to the petitioner granting or denying the recpiested relief. Such 
decision shall contain a statement setting forth the Secretary's basis 
for the grant or denial. Any exemption granted may be subject to such 
conditions as the Secretary deems appropriate. 

a^Spc. 4A was added bv Sec. 8 of Public Law 93-500 (88 Stat. 15r»4). It was later 
redeslcnated as Sec. 4B by Sec. 201(a) of the Export Administration Amendments of 
1977 (91 Stat. 244). 



134 

(c) For purposes of this section, the Secretary's decision with re- 
spect to the grant or denial of relief from unique hardship resulting 
directly or indirectly from the imposition of controls shall reflect the 
Secretary's consideration of such factors as — 

(1) Whether denial would cause a unique hardship to the ap- 
plicant which can be alleviated only by granting an exception to 
the applicable regulations. In determining whether relief shall 
be granted, the Secretary will take into account : 

(A) ownership of material for which there is no practi- 
cable domestic market by virtue of the location or nature of 
the material; 

(B) potential serious financial loss to the applicant* if not 
granted an exception ; 

(C) inability to obtain, except through import, an item 
essential for domestic use which is produced abroad from the 
commodity under control ; 

(D) the extent to which denial would conflict, to the par- 
ticular detriment of the applicant, with other national poli- 
cies including those reflected in any international agreement 
to which the United States is a party ; 

(E) possible adverse effects on the economy (including 
unemployment) in any locality or region of the United 
States; and 

(F) other relevant factors, including the applicant's lack 
of an exporting history during any base period that may be 
established with respect to export quotas for the particular 
commodity. 

(2) The effect a finding in favor of the applicant would have 
on attainment of the basic objectives of the short supply control 
program. 

In all cases, the desire to sell at higher prices and thereby obtain 
greater profits will not be considered as evidence of a unique hardship, 
nor will circumstances where the hardship is due to imprudent acts or 
failure to act on the part of the appellant. 

CONSTILTATION AND STANDARDS 

Sec. 5. (a) In determining what shall be controlled or monitored 
under this Act. and in determining the extent to which exports shall 
be limited, any department, agency, or official making these determina- 
tions shall seek information and advice from the several executive de- 
partments and independent agencies concerned with aspects of our 
domestic and foreign policies and operations having an important 
bearing on exports. Such departments and agencies shall fully cooper- 
ate in rendering such advice and information.^* Consistent with con- 
siderations of national security, the President shall from time to time 
seek information and advice from various segments of private indus- 
try in connection with the making of these determinations. In addition, 
the Secretary of Commerce shall consult with the Federal Energj^ 
Administration to determine whether monitoring under section 4 of 
this Act is warranted with respect to exports of facilities, machinery, 



3«This sentence was added by Sec. 3 of Public Law 93-500 (88 Stat. 1552 at 1553). 



135 

or equipment normally and principally used, or intended to be used, in 
the production, conversion, or transportation of fuels and ener^ (ex- 
cept nuclear energy), includin<r but not limited to, drillin<r vifrs, plat- 
forms, and e(iuipment ; petroleuui refineries, natural rras processing, 
liqueficati(m, and <riisitication plants; facilities for production of syn- 
thetic natural <i:as or synthetic crude oil; oil and ^as pipelines, pump- 
ing stations, and associated equipment; and vessels for transporting 
oil, gas, coal, and other fuels. 

(b) (1) In authorizing exports, full utilization of private competi- 
tive trade channels shall be encouraged insofar as pi^cticable, giving 
consideration to the interests of suiall business, merchant exporters as 
well as producers, and established and new exporters, and provision 
shall be made for representative trade consultation to that end. In 
addition, there may be ap])lied such other standards or criteria as may 
be deemed necessary by the head of such department, or agency, or 
official to carry out tlie policies of this Act. 

(2)^^ Upon imposing quantitative restrictions on exports of anj'^ 
article, material, or supply to carry out the policy stated in section 
3(2) (A) of this Act, the Secretary of Commerce shall include in his 
notice published in the Federal Register an invitation to all interested 
parties to submit written comments within 15 days from the date 
of publication on the impact of such restrictions and the method of 
licensing used to implement them. 

(c) ^" (1) Upon written request by representatives of a substantial 
segment of any industry which produces articles, materials and sup- 
plies, including technical data and other information, which are 
subject to export controls or are being considered for such controls 
because of their significance to the national security of the United 
States, the Secretary of Connnerce shall appoint a technical advisory 
committee for any grouping of such articles, materials, and supplies, 
including technical data and other information, which he determines 
is difficult to evaluate because of questions concerning technical mat- 
ters, worldwide availability and actual utilization of production and 
technology, or licensing procedures. Each such committee shall con- 
sist of representatives of United States industry and Government, 
including the t)epartments of Commerce, Defense, and State, and, 
when appropriate, other Government departments and agencies.**^ No 
person serving on any such committee who is representative of indus- 
try shall serve on such committee for more than four*- consecutive 
3'ears. 

(2) It shall be the duty and function of the technical advisory 
committees established under paragraph (1) to advise and assist the 
Secretary of Commerce and any other department, agency, or official 
of the Government of the United States to which the President has 
delegated power, authority, and discretion under section 4(d) with 
respect to actions designed to carry out the policy set foi-th in section 
3 of this Act. Such committees, where they have expertise in such 

"" Subsection (2) wns added bv Sec. 6(2) of Public Law 93-500 (88 Stat. 1552 at 1554). 

^''Spc. r)(c> was added bv Sec 105 of Public Law 02-412 (86 Stat. 645). 

"This sentence was amended bv Sec. 5(b) of Public Law f)3-500 (88 Stat. 1552 at 
1553). The sentence formerly read as follows: "Each committee shall consist of represen- 
tatives of Ignited States Industrv and covernn,ent." 

"Sec. 111(a) of the Export AdminlstraUon Amendments of 1977 (91 Stat. 240) struck 
out the word "two" and Inserted "four." 



186 

matters, shall be consulted with respect to questions involving (A) 
technical matters, (B) worldwide availability and actual utilization 
of production technology, (C) licensing procedures which affect the 
level of export controls applicable to any articles, materials, and 
supplies, including technical data or other information, and (D) 
exports subject to multilateral controls in which the United States 
participates including proposed revisions of any such multilateral 
controls. The Secretary shall include in each semiannual report re- 
quired by section 10 of this Act an accounting of the consultations 
undertaken pursuant to this paragraph, the use made of the advice 
rendered by the technical advisory committees pursuant to this para- 
graph, and the contributions of the technical advisory committees to 
carrying out the policies of this Act.*^ Nothing in this subsection shall 
prevent the Secretary from consulting, at any time, with any person 
representing industry or the general public regardless of whether such 
person is a member of a technical advisory committee. Members of the 
public shall be given a reasonable opportunity, pursuant to regulations 
prescribed by the Secretary of Commerce, to present evidence to such 
committees. 

(3) Upon request of any member of any such committee, the Secre- 
tary may, if he determines it appropriate, reimburse such member for 
travel, subsistence, and other necessary expenses incurred by him in 
connection with his duties as a member. 

(4) Each such committee shall elect a chairman, and shall meet at 
least every three months at the call of the Chairman, unless the Chair- 
man determines, in consultation with the other members of the commit- 
tee, that such a meeting is not necessary to achieve the purposes of this 
Act. Each such committee shall be terminated after a period of 2 
years, unless extended by the Secretary for additional periods of 2 
years. The Secretary shall consult each such committee with regard to 
such termination or extension of that committee. 

(5)** To facilitate the work of the technical advisory committees, 
the Secretary of Commerce, in conjunction with other departments 
and agencies participating in the administration of this Act, shall dis- 
close to each such committee adequate information, consistent with 
national security, pertaining to the reasons for the export controls 
Avhich are in effect or contemplated for the grouping of articles, mate- 
rials, and supplies with respect to which that committee furnishes 
advice. 

VIOLATIONS 

Sec. 6. (a) Except as provided in subsection (b) of this section, 
whoever knowingly violates any provision of this Act or any regu- 
lation, order, or license issued thereunder shall be fined not more than 



"The previous two sentences were amended and restated by Sec. Ill of the Export 
Administration Amendments of 1977 (91 Stat. 240). These sentences formerly read as 
follows : , . , 

"Such committees shall be consulted with respect to questions involving technical 
matters, worldwide availability and actual utilization of production and technology, and 
licensing procedures which may affect the level of export controls applicable to any 
articles, materials, or supplies, including technical data or other information, and in- 
cluding those whose export is subject to multilateral controls undertaken with nations 
with which the United States has defense treaty commitments, for which the com- 
mittees have expertise. Such committees shall also be consulted and kept fully Informed 
of progress with respect to the investigation required by section 4(b)(2) of this Act' 

"Paragraph (5) was added by Sec. 5(c) of Public Law 93-500 (88 Stat. 1552 at 1553). 



137 

$25,000 *' or imprisoned not more than one year, or both. For a second 
or subsequent oli'ense, the otfender shall be fined not more than three 
times the value of the exports involved or $50,000,*^ whichever is 
greater, or imprisoned not more than 5 yeai*s, or both. 

(b) Whoever willfully exports anything contrary to any provision 
of this Act or any regulation, order, or license issue^l thereunder, 
with knowledge that such exports will be used for the benefit of any 
country to which exports are restricted for national security or foreign 
policy purposes,**^ shall be fined not more than five times the value 
of the exports involved or $5(),()0(),^' whichever is greater, or impris- 
oned not more than five years, or lx)th. 

(c) (1) The head of any department or agency exercising any func- 
tions under this Act, or any officer or employee of such depai*tment or 
agency specifically designated by the head thereof, may impose a civil 
I)enalty not to exceed $10,000 *^ for each violation of this Act or any 
regulation, order, or license issued under this xVct, either in addition to 
or in lieu of any other liability or penalty which may be imposed. 

(2) *^ (A) The authority of this Act to suspend or revoke the author- 
ity of any United States person to export articles, materials, supplies, 
or technical data or other information,^® may be used with respect to 
any violation of the rules and regulations issued pursuant to section 
4A (a) of this Act. 

(B) Any administrative sanction (including any civil penalty or 
any suspension or revocation of authority to export) imposed under 
this Act for a violation of the rules and regulations issued pursuant 
to section 4A(a) of this Act may be imposed only after notice and 
opportunity for an agency hearing on the record in accordance with 
sections 554 through 557 of title 5, United States Code. 

(C) Any charging letter or other document initiating administra- 
tive proceedings for the imposition of sanctions for violations of the 
rules and regulatons issued pursuant to secton 4A(a) of this Act 
shall be made available for public inspection and copying. 

(d) The payment of any penalty imposed pursuant to subsection 
(c) may be made a condition, for a period not exceeding one year 
after the imposition of such penalty, to the granting, restoration, or 
continuing validity of any expoit license, permission, or privilege 
granted or to be granted to the person upon whom such penalty is 
imposed. In addition, the payment of any penalty imposed under 
subsection (c) may be deferred or suspended in whole or in part for a 
period of time no longer than any probation period (which may exceed 
one year) that may be imposed upon such person. Such a deferral or 
suspension shall not operate as a bar to the collection of the penalty 

« Sec. 112(n) of the Export Administration Amendments of 1977 (91 Stat. 240) stnick 
out "$10,000" and "$20,000" and Inserted ".<25.000" and "$50,000". resneotlvelv. 

<«Sec. 103rd) of the Export Administration Amendments of 1977 (91 Stat. 2.'^7) struck 
nut the words "Communist dominated nation' which previously appeared at thl<5 point, 
and inserted the words "country to which exports are restricted for national security or 
foreiern pollcv purposes". 

*'Sec. 112fb) of the Exnort Administration Amendments of 1977 (91 Stat. 240) struck 
out "$20,000" and Inserted ".<50.0nO". 

♦"Sec. 112(c) of the Export Administration Amendments of 1977 (91 Stat. 240) struck 
out ".<1.000" and inserted ".<10.000". 

"Pnraeranh (2) was added by Sec. 203(a) of the Export Administration Amendments 
of 1977.(91 Stat. 247). 

"The words "from the T'nlted States, its territories or oossesslons.". which nrevlouslv 
appeared at this point, were struck out bv Sec. .301(b)(2) of Public I>aw 95-223 (91 
Stat. 1629). 



20-594 O - 78 - 10 



138 

in the event that the conditions of the suspension, deferral, or proba- 
tion are not f ulfilled.^^ 

(e) Any amount paid in satisfaction of any penalty imposed pur- 
suant to subsection (c) shall be covered into the Treasury as a mis- 
cellaneous receipt. The head of the department or agency concerned 
may, in his discretion, refund any such penalty, within two years after 
payment, on the ground of a material error of fact or law in the im- 
position. Notwithstanding section 1346(a) of title 28 of the United 
States Code, no action for the refund of any such penalty may be 
maintained in any court. 

(f) In the event of the failure of any person to pay a penalty 
imposed pursuant to subsection (c), a civil action for the recovery 
thereof may, in the discretion of the head of the department or agency 
concerned, be brought in the name of the United States. In any such 
action, the court shall determine de novo all issues necessary to the 
establishment of liability. Except as provided in this subsection and 
in subsection (d), no such liability shall be asserted, claimed, or re- 
covered upon by the United States in any way unless it has previously 
been reduced to judgment. 

(g) Nothing in subsection (c), (d),or (f) limits 

(1) the availability of other administrative or judicial remedies 
with respect to violations of this Act, or any regulaton, order, 
or license issued under this Act ; 

(2) the authority to compromise and settle administrative pro- 
ceedings brought with respect to violations of this Act, or any 
regulation, order, or license issued under this Act ; or 

(3) the authority to compromise, remit, or mitigate seizures 
and forfeitures pursuant to section 1(b) of title VI of the Act 
of June 15, 1917 (22 U.S.C. 401 (b) ) . 

ENFORCEMENT 

Sec. 7. (a) To the extent necessary or appropriate to the enforce- 
ment of this Act or to the imposition of any penalty, forfeiture, or 
liability arising under the Export Control Act of 1949, the head of 
any department or agency exercising any function thereunder (and 
officers or employees of such department or agency specifically desig- 
nated by the head thereof) may make such investigations and obtain 
such information from, require such reports or the keeping of such 
records by, make such inspection of the books, records, and other writ- 
ings, premises, or property of, and take the sworn testimony of, any 
person. In addition, such officers or employees may administer oaths 
or affirmations, and may by subpoena require any person to appear and 
testify or to appear and produce books, records, and other writings, 
or both, and in the case of contumacy by, or refusal to obey a sub- 
poena issued to, any such person, the district court of the United States 
for any district in which such person is found or resides or transacts 
business, upon application, and after notice to any such person and 
hearing, shall have jurisdiction to issue an order requiring such per- 

«The final two sentences of subsection (d) were added by Sec. 112(d) of the Export 
Administration Amendments of 1977 (91 Stat. 240). 



139 

son to appear and give testimony or to appear and produce books, 
records, and otlier writings, or botli, and any failure to obey such 
order of the court may be punished by such court as a contempt 
thereof. 

(b) No person shall be excused from complying with any require- 
ments under this section because of his privilege against self-incrimi- 
nation, but the immunity provisions of the Compulsory Testimony Act 
of February 11, 1893 (27 Stat. 443; 49 U.S.C. 40) shall apply with 
respect to any individual who specifically claims such privilege. 

(c) Except as otherwise provided by the third sentence in section 
4A(b) (2) and by section 6(c) (2) (C) of this Act, no" department, 
agency, or official exercising any functions under this Act shall publish 
or disclose information obtained hereunder which is deemed confi- 
dential or with reference to which a request for confidential treatment 
is made by the person furnishing such information, unless the head 
of such department or agency determines that the withholding thereof 
is contrary to the national interest. Nothing in this Act shall be con- 
strued as authorizing the withholding of information from Congress, 
and any information obtained under this Act, including any report 
or license application required under section 4(b), shall be made avail- 
able upon request to any committee or subcommittee of Congress of 
appropriate iurisdiction. Xo such committee or subcommittee shall 
disclose any information obtained under this Act which is submitted 
on a confidential basis unless the full committee determines that the 
withholding thereof is contrary to the national interest." 



Note. — Sec. 107 of the Equal Export Opportunity Act (Pub- 
lic Law 92-412) stated that : 

"Nothing in this title shall be construed to requ re the release 
or publication of information which is classified pursuant to 
Executive order or to affect the confidentialty safeguards ])ro- 
vided in section 7(c) of the Export Administration Act of 1969." 



(d) In the administration of this Act, reporting requirements shall 
be so designated as to reduce the cost of reporting, recordkeeping, and 
export documentation required under this Act to the extent feasible 
consistent with effective enforcement and compilation of useful trade 
statist'cs. Reporting, recordkeeping, and export documentation re- 
quirements shall be periodically reviewed and revised in the light of 
developments in the field of information technology. A detailed state- 
ment with respect to any action taken in compliance with this subsec- 
tion shall be included in the first quarterly report made pursuant to 
section 10 after such action is taken. 

(e)=* The Secretary of Commerce, in consultation with appropriate 
United States Government departments and ajrencies and w'th appro- 
priate technical advisory committees established under section 5(c), 

« Sec. 201 (c> of the Export Administration Amendments of 1977 (91 Stat. 246) struck 
out the word "No" and Inserted the words to this po'nt In suhsectlon re). 

"The final two sentences of suhsectlon (c) were added by Sec. 113(a) of the Export 
Administration Amendments of 1977 (91 Stat. 241). 

" Subsection (e) was added by Sec. 114 of the Export Administration Amendments of 
1977 (91 Stat. 241). 



140 

shall review the rules and reflations issued under this Act and the 
lists of articles, materials, and supplies which are subject to export 
controls in order to determine how compliance with the provis ons of 
this Act can be facilitated by simplifying such rules and regulations, 
by simplifying or clarifying such lists, or by any other means. Not 
later than 1 year after the enactment of this subsection, the Secre- 
tary of Commerce shall report to Congress on the actions taken on 
the basis of such review to simplify such rules and re^^at'ons. Sucli 
report may be included in the semiannual report required by section 
10 of this Act. 

EXEMPTION FROM CERTAIN PROVISIONS RELATING TO ADMINISTRATIVE 
PROCEDURE AND JUDICIAL REVIEW 

Sec. 8. Except as provided in section 6(c) (2). the "^ functions exer- 
cised under this Act are excluded from the operation of sections 551, 
553-559, and 701-706, of title 5 United States Code. 

INFORMATION TO EXPORTERS 

Sec. 9. In order to enable United States exporters to coordinate their 
business activities with the export control policies of the United States 
Government, the agencies, departments, and officials responsible for 
implementing the rules and regulations authorized under this Act 
shall, if requested, and insofar as it is consistent with the national 
security, the foreign policy of the United States, the effective adminis- 
tration of this Act, and requirements of confidentiality contained in 
this Act — 

(1) inform each exporter of the considerations which may cause 
his export license request to be denied or to be the subject of 
lengthy examination ; 

(2) in the event of undue delay inform each exporter of the 
circumstances arising during the Government's consideration of 
his export license application which are cause for denial or for 
further examination ; 

(3) give each exporter the opportunity to present evidence and 
information which he believes will help the agencies, departments, 
and officials concerned to resolve any problems or questions which 
are, or may be, connected with his request for a license ; and 

(4) inform each exporter of the reasons for a denial of an 
export license request. 

REPORT ^® 

Sec. 10. (a) The head of any department or agency, or other official 
exercising any functions under this Act, shall make a semiannual re- 
port,^'^ to the President and to the Congress of his operations here- 
under. 



» Sec. 203(b) of the Export Administration Amendments of 1977 (91 Stat. 247) struck 
out the word "The" and inserted the words "Exeent as provided in section 6<'c)(2), the". 

«»Sec. 116(b)(1) of the Export Administration Amendments of 1977 (91 Stat. 242) 
struck out the word "^UARTERT.Y" in the section hearJinjr. 

6T Section 2(1) of Public I>aw 93-608 (88 Stat. 1967 at 1971) struck out the wo-d* 
"quarterly report, within 45 days after each quarter" and substituted "semiannual re- 
port." 



141 

(b)^® (1) The ^® report required for the first quarter of 1975 and 
every ^° report thereafter shall include summaries of the information 
contained in the reports required by section 4(c)(2) of this Act, to- 
gether with an analysis by the Secretary of Commerce of (A) the 
impact on the economy and world trade of shortages or increased 
prices for articles, nuiterials, or supplies subject to monitoring under 
this Act, (B) the worldwide supply of such articles, materials, and 
supplies, and (C) actions taken by other nations in response to such 
shortages or increased prices. 

(2) Each such ^^ report shall also cx)ntain an analysis by the Sec- 
retary of Commerce of (A) the impact on the economy and world 
trade of shortages or increased prices for commodities subject to the 
reporting requirements of section 812 of the Agricultural Act of 1970, 
(B) the worldwide supply of such commodities, and (C) actions being 
taken by other nations in response to such shortages or increased prices. 
The Secretary of Agriculture shall fully cooperate with the Secretary 
of Commerce in providing all information required by the Secretary 
of Commerce in making such analysis. 

(c)** Each semiannual report shall include an accounting of — 

(1) any organizational and procedural changes instituted, any 
reviews undertaken, and any means used to keep the business 
sector of the Nation informed, pursuant to section 4(a) of this 
Act; 

(2) any changes in the exercise of the authorities of section 
4(b) of this Act; 

(3) any delegations of authority under section 4(e) of this 
Act; 

(4) the disposition of export license applications pursuant to 
section 4 (g) and (h) of this Act; 

(5) consultations undertaken with technical advisory commit- 
tees pursuant to section 5(c) of this Act; 

(6) violations of the provisions of this Act and penalties im- 
posed pursuant to section 6 of this Act; and 

(7) a description of actions taken by the President and the 
Secretary of Commerce to effect the policies set forth in section 
3(5) of this Act. 

DEFINITIONS 

Sec. 11. *2 As used in this Act — 

(1) the term "person" includes the singular and the plural and 
any individual, partnership, corporation, or other form of associ- 
ation, including any government or agency thereof; and 

(2) the term "United States person" means any United States 
resident or national (other than an individual resident outside 



M Subsection (b) was added by Sec. 3(b) of Public Law 93-500 (88 Stat. 1552). 

»Sec. 116(b)(2)(A) of the Export Administration Amendments of 1977 (91 Stat. 242) 
struck out the word "quarterly" which formerly appeared at this point. 

«Sec. llfi(b)(2)(B) of the Export Administration Amendments of 1977 (91 StaL 242) 
struck out the word "second" which formerly appeared at this pr»int. 

« Subsection (c) was added by Sec. 116(a) of the Export Administration Amendments 
of 1977 (91 Stat. 241). 

«2 Sec. 204 of the Export Administration Amendments of 1977 (91 Stat. 247) amended 
and restated Sec. 11. The former text read as follows : 

"Sec. 11. The term 'pers(»n' as used in this Act includes the singular and the plural and 
any Individual, partnership, corporation, or other form of association, including any 
government or agency thereof." 



142 

the United States and employed by other than a United States 
person), any domestic concern (inchiding any permanent 
domestic establishment of any foreign concern) and any foreign 
subsidiary or affiliate (including any permanent foreign estab- 
lishment) of any domestic concern which is controlled in fact 
by such domestic concern, as determined under regulations of 
the President. 

EFFECT ox OTHER ACTTS 

Sec. 12. (a) The Act of February 15, 1936 (49 Stat. 1140), relating 
to the licensing of exports of tinplate scrap, is hereby superseded ; but 
nothing contained in this Act shall be construed to modify, repeal, 
supersede, or otherwise affect the provisions of any other laws author- 
izing control over exports of any commodity. 

(b) The authority granted to the President under this Act shall be 
exercised in such manner as to achieve effective coordination with the 
authority exercised under section 414 of the Mutual Security Act of 
1954 (22 U.S.C. 1934). 

AUTHORIZATION OF APPROPRIATIONS 

Sec. 13.^' (a) Notwithstanding any other provision of law, no 
appropriation shall be made under any law to the Department of 
Commerce for expenses to carry out the purposes of this Act for any 
fiscal year commencing on or after October 1, 1977, unless previously 
and specifically authorized by legislation. 

(b) There is hereby authorized to be appropriated to the Depart- 
ment of Commerce $14,033,000 (and such additional amounts as may 
be necessary for increases in salary, pay, retirement, other employee 
benefits authorized by law, and other nondiscretionary costs) for fiscal 
years 1978 and 1979 to carry out the purposes of this Act. 

EFFECTTV^E DATE 

Sec. 14.^^ (a) This Act takes effect upon the expiration of the Export 
Control Act of 1949.«* 

(b) All outstanding delegations, rules, regulations, orders, licenses, 
or other forms of administrative action under the Export Control Act 
of 1949 or section 6 of the Act of July 2, 1940 (54 Stat. 714), shall, 
until amended or revoked, remain in full force and effect, the same as if 
promulgated under this Act. 

TERMINATION DATE 

Sec. 15.®^ The authority granted by this Act terminates on Septem- 
ber 30, 1979 ^^ or upon any prior date which the Congress by concur- 
rent resolution or the President by proclamation may designate. 

83 Sec. 13 was added by Sec. 102 of the Export Administration Amendments of 1977 (91 
Stat. 235). Sec. 102 also redesignated Sections 13 and 14 as 14 and 15. respectively. 

•* Sec. 108 of the Equal Export Opportunity Act provided that it was to take effect 
July 31, 1972. 

•5 The original expiration date of June 30, 1974 was changed to Julv 30. 1974 bv Public 
Law 93-327 (88 Stat. 287), approved June 30. 1974 ; to September 30.* 1974 bv Public Law 
93-372 (88 Stat. 444). approved August 14, 1974; to September 30. 1976 bv Sec. 13 of 
Public Law 93-500 (88 Stat. 1552 at 1557) ; and to September 30. 1979 by' Sec. 101 of 
Public Law 95-52 (91 Stat. 235). 



143 



XoTE. — Sec. 14 of the Export Administration Amendments of 
1974, Public Law 93-500 (88 Stat. 1552), made the following pro- 
vision entitled ^'Presidential Review": 

''The Presiclent is directed to review all laws, re^ilations issued 
thereunder by the Atomic Energy Commission, the Department 
of Commerce, and other Government agencies, governing the ex- 
port and re-export of materials, supplies, articles, technical data 
or other information relating to the design, fabrication, develop- 
ment, supply, i-epair or replacement of any nuclear facility or any 
part thereof, and to report within six months to the Congress on 
the adequacy of such i*egulations to pi-event the proliferation of 
nuclear capability for non peaceful purposes. The President is 
also directed to iTview domestic and international nuclear safe- 
guards and to report within six months to the Congress on the 
adequacy of such safeguards to prevent the proliferation, diver- 
sion or theft of all such nuclear materials and on efforts by the 
United States and other countries to strengthen international 
nuclear safeguards in anticipation of the Review Conference 
scheduled to be held in February 1975 pursuant to Article VIII, 
section 3 of the Treaty on the Xon-Proliferation of Nuclear 
Weapons." 



b. Export Administration Amendments of 1977 

Partial text of Public Law 95-52 [H.R. 5840], 91 Stat. 235, approved 

June 22, 1977 



Note. — Except for the provisions noted below, the Export 
Administration Amendments of 1977 consists of amendments to 
the Export Administration Act of 1969. 



AN ACT To amend the Export Administration Act of 1969 in order to extend 
authorities of that Act and improve the administration of export controls 
under that Act, and to strengthen the antiboycott provisions of that Act. 

Be it enacted hy the Senate and House of Rejyresentatives of the 
United States of America in Congress assembled^ 

SHORT TITLE 

Section 1. This Act may be cited as the "Export Administration 
Amendments of 1977". 

TITLE I— EXPORT ADMINISTRATION IMPROVEMENTS 

AND EXTENSION 



SPECIAL REPORT OX MULTILATERAL EXPORT CONTROLS 

Sec. 117.^ Not later than 12 months after the enactment of this 
section, the President shall submit to the Congress a special report 
on multilateral export controls in which the United States participates 
pursuant to the Export Administration Act of 1969 and pursuant to 
the Mutual Defense Assistance Control Act of 1951. The purpose of 
such special report shall be to assess the effectiveness of such multi- 
lateral export controls and to formulate specific proposals for increas- 
ing the effectiveness of such controls. That special report shall in- 
clude — 

(1) the current list of commodities controlled for export by 
agreement of the group known as the coordinating Committee of 
the Consultative Group (hereafter in this section referred to as 
the "Committee'') and an analysis of the process of reviewing 
such list and of the changes which result from such review ; 

(2) data on and analvsis of requests for exceptions to such 
list; ' 

(3) a description and an analysis of the process by which deci- 
sions are made by the Committee on whether or not to grant such 
requests ; 



' 50 U.S.C. App. 2409 note. 

(144) 



145 

(4) an analysis of the uniformity of interpretation and enforce- 
ment by the participating countries of the export controls agreed 
to by the Committee (including controls oyer the re-export of 
such commcxlities from countries not participating in the Com- 
mittee), and information on each case where such participating 
countries have acted contrary to the United States interpretation 
of the policy of the Committee, inchiding United States repre- 
sentations to such countries and tlie response of such countries; 

(5) an analysis of tlie problem of exports of advanced tech- 
nology by countries not participatiiiir in the Coininittoe, including 
such exports by subsidiaries or affiliates of United States busi- 
nesses in such countries ; 

(6) an analysis of the effectiveness of any procedures employed, 
in cases in which an exception for a listed commodity is granted 
by the Committee, to determine whether there has been compli- 
ance with any conditions on the use of the excepted commodity 
which were a basis for the exception; and 

(7) detailed recommendations for improving, through formali- 
zation or other means, the effectiveness of multilateral export 
controls, including specific recommendations for the development 
of more precise criteria and procedures for collective export deci- 
sions and for the development of more detailed and formal 
enforcement mechanisms to assure more uniform interpretation 
of and compliance with such criteria, procedures, and decisions 
by all countries participating in such multilateral export controls. 

REVIEW OF UNILATERAL AND MULTILATERAL EXPORT CONTROL LISTS 

Sec. 118.2 The Secretary of Commerce, in cooperation with appro- 
priate United States Government departments and agencies and the 
appropriate technical advisory committees established pursuant to the 
Export Administration Act of 1969, shall undertake an investigation 
to determine whether Ignited States unilateral controls or multilateral 
controls in which the United States participates should be removed, 
modified, or added with respect to particular articles, materials, and 
supplies, including technical data and other information, in order to 
protect the national security of the United States. Such investigation 
shall take into account such factors as the availability of such articles, 
materials, and supplies from other nations and the degree to which 
the availability of the same from the Ignited States or from any 
country with which the United States participates in multilateral 
controls would make a significant contribution to the military poten- 
tial of any country threatening or potentially threatening the national 
security of the TTnited States. The results of such investigation shall 
be reported to the Congress not later than December 31, 1078. 

TECHNOLOGY EXPORT STX'DY 

Sec. 119.2 (j^^ 'pj^p President, acting through the Secretary of Com- 
merce, the Secretary of Labor, and the International Trade Commis- 
sion, shall conduct a study of the domestic economic impact of exports 

3 50 U.S.C. App. 2403 note. 



146 

from the United States of industrial technology whose export requires 
a license under the Export Administration Act of 1969. Such study 
shall include an evaluation of current exporting patterns on the inter- 
national competitive position of the United States in advanced indus- 
trial technology fields and an evaluation of the present and future 
effect of these exports on domestic employment. 

(b) The results of the study conducted pursuant to subsection (a) 
will be reported to the Congress within one year after the date of 
enactment of this Act. 

REPORT ON TECHNICAL DATA TRANSFERS 

Sec. 120.2 The Secretary of Commerce shall conduct a study of the 
transfer of technical data and other information to any country to 
which exports are restricted for national security purposes and the 
problem of the export, by publications or any other means of public 
dissemination, of technical data or other information from the United 
States, the export of which might prove detrimental to the national 
security or foreign policy of the United States. Not later than 12 
months after the enactment of this section, the Secretary shall report to 
the Congress his assessment of the impact of the export of such techni- 
cal data or other information by such means on the national security 
and foreign policy of th United States and his recommendations for 
monitoring such reports without impairing freedom of speech, freedom 
of press, or the freedom of scientific exchange. Such report may be 
included in the semiannual report required by section 10 of the Export 
Administration Act of 1969. 

TITLE II— FOREIGN BOYCOTTS 



PREEMPTION 

Sec. 205.^ The amendments made by this title and the rules and 
regulations issued pursuant thereto shall preempt any law, rule, or 
regulation of any of the several States or the District of ColumlDia, 
and any of the territories or possessions of the United States, or of 
any government subdivision thereof, which law, rule, or regulation 
pertains to participation in, compliance with, implementation of, or 
the furnishing of information regarding restrictive trade practices 
or boycotts fostered or imposed by foreign countries against other 
countries. 



«50 U.S.C. App. 2403-la note. 



c. Executive Order 12002, July 7, 1977, 42 F.R. 35623 

Administration of the Export Administration Act of 1969, as 

Amended 

By virtue of the authority vested in me by the Constitution and 
statutes of the United States of America, including the Export Ad- 
ministration Act of 1969, as amended (50 U.S.C. App. 2401, et seq.), 
and as President of the United States of America, it is hereby ordered 
as follows: 

Section 1. Except as provided in Section 2, the power, authority, 
and discretion conferred upon the President by the provisions of the 
Export Administration Act of 1969, as amended (50 U.S.C. App. 
2401, et seq.), hereinafter referred to as the Act, are delegated to the 
Secretary of Commerce, with the power of successive redelegation. 

Sec. 2. (a) The power, authority and discretion conferred upon the 
President in Sections 4(h) and 4(1) of the Act are retained by the 
President. 

(b) The power, authority and discretion conferred upon the Presi- 
dent in Section 3(8) of the Act, which directs that every reasonable 
effort be made to secure the removal or reduction of assistance by for- 
eign countries to international terrorists through cooperation and 
agreement, are delegated to the Secretary of State, with the power 
of successive redelegation. 

Sec. 3. The Export Administration Review Board, hereinafter re- 
ferred to as the Board, which was established by Executive Order 
No. 11533 of June 4, 1970, as amended, is hereby continued. The Board 
shall continue to have as members the Secretary of Commerce, who 
shall be Chairman of the Board, the Secretary of State, the Secretary 
of Defense, and the Chairman oJF the East -West Foreign Trade Board 
(Section 7 of Executive Order No. 11846, as amended). No alternative 
Board members shall be designated, but the acting head of any depart- 
ment may serve in lieu of the head of the concerned department. In 
the case of the East-West Foreign Trade Board, the Deputy Chairman 
or the Executive Secretary may serve in lieu of the Chairman. The 
Board may invite the heads of other United States Government de- 
partments or agencies, other than the agencies represented by Board 
members, to participate in the activities of the Board when matters 
of interest to such departments or agencies are under consideration. 

Sec. 4. The Secretary of Commerce may from time to time refer to 
the Board such particular export license matters, involving questions 
of national security or other major policy issues, as the Secretary shall 
select. The Secretary of Commerce shall also refer to the Board any 
other such export license matter, upon the request of any other member 
of the Board or of the head of any other United States Government 
department or agency having any interest in such matter. The Board 
shall consider the matters so referred to it, giving due consideration to 
the foreign policy of the United States, the national security, and the 

(147) 



148 

domestic economy, and shall make recommendation thereon to the 
Secretary of Commerce. 

Sec. 5. The President may at any time (a) prescribe rules and 
regulations applicable to the power, authority, and discretion referred 
to in this Order, and (b) comnmnicate to the Secretary of Commerce 
such specific directives applicable thereto as the President shall deter- 
mine. The Secretary of Commerce shall from time to time report to 
the President upon the administration of the Act and, as the Secretary 
deems necessary, may refer to the President recommendations made by 
the Board under Section 4 of this Order. Neither the provisions of this 
section nor those of Section 4 shall be construed as limiting the pro- 
visions of Section 1 of this Order. 

SeCo 6. All delegations., rules, regulations, orders, licenses, and other 
forms of administrative action made, issued, or otherwise taken under, 
or continued in existence by, the Executive orders revoked in Section 7 
of this Order, and not revoked administratively or legislatively, shall 
remain in full force and effect under this Order until amended, modi- 
fied, or terminated by proper-authority. The revocations in Section 7 
of this Order shall not affect any violation of any rules, regulations, 
orders, licenses or other forms of administrative action under those 
Orders during the period those Orders were in effect. 

Sec. 7. Executive Order No. 11538 of June 4, 1970, PLxecutive Order 
No. 11683 of August 29, 1972, Executive Order No. 11798 of August 14, 
1974, Plxecutive Order No. 11818 of November 5, 1974, Executive 
Order No. 11907 of March 1, 1976, and Executive Order No. 11940 of 
September 30, 1976 are hereby revoked. 



d. Executive Order 11753, December 20, 1973, 38 F.R. 34983 

KSTABMSTIIXO THE PrESIDENT's ExPORT CoUNCIL AND FoR OtIIER 

Purposes 

By virtue of the authority vested in me as President of the United 
States of America, it is hereby ordered as follows : 

Section 1. Establishment of the President's Export Council, (a) 
There is hereby established within the Department of Commerce the 
President's Export Council, hereinafter referred to as the "Export 
Council," which shall be composed of a Chairman, a Vice Chairman, 
and twenty other members representative of business and industry of 
which eight members shall be selected without regard to geographic 
considerations and twelve members shall be selected so as to provide 
appropriate regional representation. The President shall appoint the 
Chairman, the Vice Chairman, and all other members of the Export 
Council. 

(b) The Export Council shall serve as a national advisory body to 
the President on export expansion activities. 

(c) The Secretary of Commerce (hereinafter referred to as the "Sec- 
retary") is directed to insure that the recommendations of the Export 
Council receive appropriate Governmental consideration. 

(d) The Secretary, with the concurrence of the Chairman, shall ap- 
point an Executive Secretary for the Export Council. 

Sec. 2. Fimctions of the Export Council. The Export Council shall, 
through the Secretary, advise the President, the Council on Interna- 
tional Economic Policy (CIEP), and the President's Interagency 
Committee for Export Expansion (PICEE^ on matters relating to 
export trade. In particular, the Export Council may — 

(1) Identify and examine problems regarding the effects of 
industrial practices on export trade and the need for industry to 
improve its export efforts, and recommend solutions to these 
problems. 

(2) Survey and evaluate export expansion activities which re- 
flect the ideas of the business community. 

(3) Provide liaison among members of the business and indus- 
trial community on export expansion matters. 

(4) Encourage the business and industrial community to enter 
new foreign markets and to expand existing export programs. 

(5) Advise on plans and actions of the Federal Government 
involving export expansion policies affecting business and in- 
dustry. 

(6) Provide a forum for business and Government on current 
and emerging problems and issues in the field of export expansion. 

Sec. 3. Subordinate Committees. The Export Council may establish, 
with the concurrence of the Secretary, an executive committee and such 
other subordinate committees as it considers necessary in the perform- 

(149) 



150 

ance of its functions. Subordinate committees shall be headed by a 
chairman selected from the membership by the Chairman of the Ex- 
port Council with the concurrence of the Secretary. Members of the 
subordinate committees shall be selected by the Secretary from repre- 
sentatives of business and industry. 

Sec. 4. Administrative Assistance, As permitted by law and as neces- 
sary to carry out the purposes of this order, the Secretary may provide 
or arrange for administrative and staff services, support, and facilities 
for the Export Council, including its executive committee and sub- 
ordinate committees. 

Sec. 5. Expenses. Members of the Export Council, including its exec- 
utive committee and subordinate committees, shall receive no compen- 
sation from the United States by reason of their services under this 
order, but may, to the extent permitted by law, be allowed travel ex- 
penses, including per diem in lieu of subsistence, as authorized by law 
(5 U.S.C. 5703) for persons in the Government service employed inter- 
mittently. 

Sec. 6. Federal Advisory Gorwmittee Act, The Department of Com- 
merce shall perform such functions with respect to the administration 
of this order as may be required under the provisions of the Federal 
Advisory Committee Act (Public Law 92-463; 86 Stat. 770). 

Sec. 7. Construction, Nothing in this order shall be construed as sub- 
jecting any Federal agency, or any function vested by law in, or as- 
signed pursuant to law to, any Federal agency to the authority of any 
other Federal agency, the Export Council, or its Executive Committee 
and any of its subordinate committees, or as abrogating or restricting 
any such function in any manner. 

Sec. 8. Revocation. The Interagency Committee on Export Expan- 
sion is hereby abolished and Executive Order No. 11132 of December 
12, 1963, as amended by Executive Order No. 11148 of March 23, 1964. 
is hereby revoked. 



5. Trading With the Enemy 
a. Trading With the Enemy Act of 1917, as amended 

Partial text of Public Law 65-91 [H.R, 4960], 40 Stat. 415; 12 U.SC. 95.a, approved 
October 6, 1917, as amended by Public Law 65-217 [H.R. 12923], 40 Stat. 965, 
approved September 24, 1918; Public Law 73-1 [H.R .1491], 48 Stat. 1, approved 
March 9, 1933; Public Resolution 76-69 [S.J. Res. 252], 54 Stat. 179, approved 
May 7, 1960; Public Law 77-354 [H.R. 6233], 55 Stat. 838, approved December 18, 
1941; Presidential Proclamation 2695, effective July 4, 1946, 60 Stat. 1352; 
and by Public Law 95-223 [H.R. 7738], 91 Stat. 1625, approved December 28, 
1977. 

***** * * 

Section 5(b) ^ (1). During the time of war,^ the President may 
through any agency that he may designate, and under such rules and 
regulations as he may prescribe, by means of instructions, licenses, 
or otherwise — 

(A) investigate, regulate, or prohibit, any transactions in for- 
eign exchange, transfers of credit or payments between, by, 
through, or to any banking institution, and the importing, ex- 
porting, lioarding, melting, or earmarking of gold or silver coin 
or bullion, currency or securities, and 

(B) investigate, regulate, direct and compel, nullify, void, pre- 
vent or prohibit, any acquisition, holding, withholding, use, 
transfer withdrawal, transportation, importation or exportation 
of, or dealing in, or exercising any right, power, or privilege with 
respect to, or transactions involving, any property in which any 
foreign country or a national thereof has any interest, 

by any person, or with respect to any property, subject to the jurisdic- 
tion of the United States ; and any property or interest of any foreign 
country or national thereof shall vest, w^ien, as, and upon the terms, 
directed by the President in such agency or person as may be 
designated from time to time by the President, and upon such terms 
and conditions as the President may prescribe such interest or property 
shall be held, used, administered, liquidated, sold, or otherwise dealt 
with in the interest of and for the benefit of the Ignited States and 
such designated agency or person may perform any and all acts 

1 As amended and restated by sec. 301 of Public Law 77-354 (55 Stat. 839). 

* The words "or during any other period of national emerRency declared bv the Presi- 
dent", which previously appeared at this point, were struck out by Sec. 101(a) of Public 
Law 95-223 (91 Stat. 1625). Sec. 101 (b) and (c) of the same Act further stipulated: 

"(b) Xotwlthstandlnp the amendment made by subsection (a), the authorities conferred 
upon the President by section 5(b) of the Trading With the Enemy Act, which were belns 
exercised with respect to a country on July 1, 1977. as a result of a national enierpency 
declared by the President before such date, may continue to be exercised with respect to 
such country, except that, unless extended, the exercise of such authorities shall terminate 
(subject to the savings provisions of the second sentence of section 101(a) of the National 
Emergencies Act) at the end of the two-year period beginning on the date of enactment 
of the National Emergencies Act. The President may extend the exercise of such authorities 
for one-year periods upon a determination of each such extension that the exercise of 
such authorities with respect to such country for another year Is In the national Interest of 
the T'Uited States. 

"(c) The termination and extension provisions of subsection (b) of this section supersede 
the provisions of section 101(a) and of title II of the National Emergencies Act to the ex- 
tent that the provisions of subsection (b) of this section are inconsistent with those 
provisions. 

(151) 



152 

incident to the accomplishment or furtherance of these purposes ; and 
the President shall, in the mamier hereinabove provided, require an) 
person to keep a full record of, and to furnish under oath, in the 
form of reports or othenvise, complete information relative to any act 
or transaction referred to in this subdivision either before, during, or 
after tlie completion thereof, or relative to any interest in foreign 
property, or relative to any property in which any foreign country or 
any national thereof has or has liad any interest, or as may be otherwise 
accessary to enforce the provisions of tliis subdivision, and in an) 
case in which a report could be required, the President may, in the 
manner hereinabove provided, require the production, or if necessary 
to the national security or defense, the seizure, of any books of accoimt, 
records, contracts, letters, memoranda, or other papers, in the custody 
or control of such person.^ 

(2) Any payment, conveyance, transfer, assignment, or delivery of 
property or interest therein, made to or for the account of the United 
States, or as otherwise directed, pursuant to this subdivision or any 
nile, regulation, instruction, or direction issued hereunder shall to 
the extent thereof be a full acquittance and discharge for all purposes of 
the obligation of the person making the same; and no person shall 
be held liable in any court for or in respect to anything done or omitted 
in good faith in connection with the administration of, or in pursuance 
of and in reliance on, this subdivision, or any rule, regulation, instruc- 
tion, or direction issued hereunder. 

(3) As used in this subdivision the term "United States" means 
the United States and any place subject to the jurisdiction thereof : * 
Provided^ however^ That the foregoing shall not be construed as a 
limitation upon the power of the President, which is hereby conferred, 
to prescribe from time to time, definitions, not inconsistent with the 
purposes of this subdivision, for any or all of the terms used in this 
subdivision."^ As used in this subdivision the term "person" means an 
individual, partnership, association, or corporation. 

3 The words "; and the President may, in the manner hereinabove provided, take other 
or further measures not inconsistent herewith for the enforcement of this subdivision", 
which previously appeared at this point, were struclc out by Sec. 102(2) of Public Law 
95-223 (91 Stat. 1625). 

4 Words "including the Philiopine Islands, and the several courts of first instance of 
the Commonwealth of the Philippine Islands shall have jurisdiction in all cases, civil or 
criminal, arising under this subdivision in the Philippine Islands and concurrent jurisdic- 
tion with the district courts of the United Statesof all cases, civil or criminal, arising upon 
the high seas" immediately preceding the proviso in subsection (b) (3) of this section, 
have been omitted on the authority of 1946 Proclamation No. 2695; which is set out as a 
note under section 1394 of Title 22, Foreign Relations and Intercourse, and in which the 
President proclaimed the independence of the Philippines. 

"Sec. 103(b) of Public Law 95-223 (91 Stat. 1626) struck out the following sentence 
which previously appeared at this point : 

"Whoever willfully violates any of the provisions of this subdivision or of any license, 
order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than 
$10,000, or, if a natural person, may be imprisoned for not more than ten years, or both • 
and any officer, director, or agent of any corporation who knowingly participates in such 
violation may be punished by a like fine, imprisonment, or both." 



b. Trading With the Enemy Act Reform Legislation 

Partial text of I»ublic Law 95-223 [H.R. 7738], 91 Stat. 1625, approved 

December 28, 1977 



Not?:. — Except for the provisions noted below, this Act con- 
sists of amendments to the Trading With the Enemy Act of 1917 
and the Export Administration Act of 1969. 



AN ACT With respect to the powerg of the President in time of war or national 

emergency. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assemhhd^ 

TITLE I— AMENDMENTS TO THE TRADING WITH THE 

ENEMY ACT 

REMOVAL OF NATIONAL EMERGENCY POWERS UNDER THE TRADING WITH 

THE ENEMY ACT 

Sec. 101. (a) * * * 

(b) Notwithstanding the amendment made by subsection (a), the 
authorities conferred upon the President by section 5(b) of the Trad- 
ing With the Enemy Act, which were being exercised with respect to 
a country on July 1, 1977, as a result of a national emergency declared 
by the President before such date, may continue to be exercised with 
respect to such country, except that, unless extended, the exercise of 
such authorities shall terminate (subject to the savings provisions of 
the second sentence of section 101 (a) of the National Emergencies Act) 
at the end of the two-year periocl beginning on the date of enactment 
of the National Emergencies Act. The President may extend the exer- 
cise of such authorities for one-year periods upon a determination of 
each such extension that the exercise of such authorities with respect 
to such country for another year is in the national interest of the 
United States. 

(c) The termination and extension provisions of subsection (b) of 
this section ?upei-sede the provisions of section 101(a) and of title II 
of the National Emergencies Act to the extent that the provisions of 
subsection (b) of this section are inconsistent with those provisions. 

(d) Paragraph (1) of section 502 (a) of the National Emergencies 
Act is repealed. 

* * ♦ ♦ ♦ » * 

Sec. 103. (a) Section 16 of the Trading With the Enemv Act is 
amended by striking out "$10,000" and inserting in lieu' thereof 
"«poO,000 . 



(153) 



20-594 O - 78 - 11 



154 

TITLE II— INTERNATIONAL EMERGENCY ECONOMIC 

POWERS 

SHORT TITLE 

SeCo 20L This title may l)€ cited as the "International Emergency 
Economic Powers Act". 

SITUATIONS IN WHICH AUTHORITIES MAY BE EXERCISED 

Sec. 202. (a) Any authority granted to the President by section 
203 may be exercised to deal with any unusual and extraordinary 
threat, which has its source in whole or substantial part outside the 
United States, to the national security, foreign policy, or economy of 
the United States, if the President declares a national emergency with 
respect to such threat. 

(b) The authorities granted to the President by section 203 may 
only be execised to deal with an unusual and extraordinary threat with 
respect to which a national emergency has been declared for purposes 
of this title and may not be exercised for any other purpose. Any 
exercise of such authorities to deal with any new threat shall bo based 
on a new declaration of national emergency which must be with 
respect to such threat. 

GRANT OF AUTHORITIES 

Sec. 203. (a) (1) At the times and to the extent specified in section 
202, the President may, under such regulations as he may prescribe, by 
means of instructions, licenses, or otherwise — 

(A) investigate, regulate, or prohibit — 

(i) any transactions in foreign exchange, 

(ii) transfers of credit or payments between, by, through, 
or to any banking institution, to the extent that such trans- 
fers or payments involve any interest of any foreign country 
or a national thereof, 

(iii) the importing or exporting of currency or securities; 
and 

(B) investigate, regulate, direct and compel, nullify, void, 
prevent or prohibit, any acquisition, holding, withholding, use, 
transfer, withdrawal, transportation, importation or exportation 
of, or dealing in, or exercising any right, power, or privilege with 
respect to, or transactions involving, any property in which any 
foreign country or a national thereof has any interest ; 

by any person, or with respect to any property, subject to the jurisdic- 
tion of the United States. 

(2) In exercising the authorities granted by paragraph (1), the 
President may require any person to keep a full record of, and to 
furnish under oath, in the form of reports or otherwise, complete in- 
formation relative to any act or transaction referred to in paragraph 
(1) either before, during, or after the completion thereof, or relacive 
to any interest in foreign property, or relative to any property in which 
any foreign country or any national thereof has or has had any inter- 
est, or as may be otherwise necessary to enforce the provisions of such 
paragraph. In any case in which a report by a person could be required 



155 

under this paragraph, the President may require tlie production of 
any books of account, records, contracts, letters, memorandums, or 
other papers, in the custody or control of such person. 

(3) Compliance with any rep:ulation, instruction, or direction issued 
under this title shall to the extent thereof be a full acquittiince and 
discharge for all purposes of the obligation of the person mak.ng the 
i^ame. No person shall be held liable in ai^y court for or with respect to 
anything done or omitted in good faith in connection with the admin- 
istration of, or pursuant to and in reliance on, this title, or any regula- 
tion, instruction, or direction issued under this title. 

(b) The authority granted to the President by this section does not 
include the authority to regulate or prohibit, directly or indirectly— 

(1) any postal, telegraphic, telephonic, or other personal com- 
munication, which does not involve a transfer of anything of 
value: or 

(2) donations, by persons subject to the jurisdtction of the 
United States, of articles, such as food, clothing, and medicine, 
intended to be used to relieve human suffering, except to the extent 
that the President determines that such donations (A) would 
seriously impair his ability to deal with any national emergency 
declared under section 202 of this title, "(B) are in response 
to coercion against the proposed recipient or donor, or (C) would 
endanger Armed Forces of the United States which are engaged 
in hostilities or are in a situation where imminent involvement in 
hostilities is clearly indicated by the circumstances. 

COXSULTATIOX AND REPORTS 

Sec. 204. (a) The President, in evevry possible instance, shall consult 
with the Congress l)efore exercising any of the authorities granted by 
this title and shall consult regularly with the Congress so long as such 
authorities are exercised. 

(b) Whenever the President exercises any of the authorities granted 
by this title, he shall immediately transmit to the Congress a report 
specifying — 

(1) the circumstances which necessitate such exercise of nu- 
thority ; 

(2) why the President believes those circumstances constitute 
an unusual and extraordinary threat, which has its source in whole 
or substantial part outside the United States, to the national secu- 
rity, foreign ]iolicy, or economy of the United States; 

(3) the authorities to be exercised and the actions to be taken 
in the exercise of those authorities to deal with those circum- 
stances ; 

(4) why the President believes such actions are necessary to 
deal with those circumstances ; and 

(5) any foreign countries with respect to which such actions are 
to be taken and why such actions are to be taken with respect to 
those countries. 

(c) At least once during each succeeding six-month period after 
transmitting a report pursuant to subsection (b) with respect to an 
exercise of authorities under this title, the President shall report to 
the Congress with respect to the actions taken, since the last such 



156 

report, in the exercise of such authorities, and with respect to anj^ 
changes which have occurred concerning any information previously 
furnished pursuant to paragraphs (1) through (5) of subsection (b). 
(d) The requirements of this section are supplemental to those con- 
tained in title IV of the National Emergencies Act. 

AUTHORITY TO ISSUE REGULATIONS 

SeCo 205. The President may issue such regulations, including reg- 
ulations prescribing definitions, as may be necessary for the exercise 
of the authorities granted by this title. 

PENALTIES 

Sec. 206. (a) A civil penalty of not to exceed $10,000 may be imposed 
on any person who violates any license, order, or regulation issued 
under this title. 

(b) Whoever willfully violates any license, order, or regulation 
issued under this title shall, upon conviction, be fined not more than 
$50,000, or, if a natural person, may be imprisoned for not more than 
ten years, or both ; and any officer, director, or agent of any corporation 
who knoVingly participates in such violation may be punished by a 
like fine, imprisonment, or both. 

SAVINGS PROVISION 

Sec. 207. (a)(1) Except as provided in subsection (b), notwith- 
standing the termination pursuant to the National Emergencies Act 
of a national emergency declared for purposes of this title, any authori- 
ties granted by this title, which are exercised on the date of such termi- 
nation on the basis of such national emergency to prohibit transactions 
involving property in which a foreign country or national thereof has 
any interest, may continue to be so exercised to prohibit transactions 
involving that property if the President determines that the continua- 
tion of such prohibition with respect to that property is necessary on 
account of claims involving such country or its nationals. 

(2) Notwithstanding the termination of the authorities described 
in section 101 (b) of this Act, any such authorities, which are exercised 
with respect to a country on the date of such termination to prohibit 
transactions involving any property in which such country or any 
national thereof has any interest, may continue to be exercised to pro- 
hibit transactions involving that property if the President determines 
that the continuation of such prohibition with respect to that property 
is necessary on account of claims involving such country or its 
nationals. 

(b) The authorities described in subsection (a)(1) may not con- 
tinue to be exercised under this section if the national emergency 
is terminated by the Congress by concurrent resolution pursuant to 
section 202 of the National Emergencies Act and if the Congress speci- 
fies in such concurrent resolution that such authorities may not con- 
tinue to be exercised under this section. 

(c) (1) The provisions of this section are supplemental to the sav- 
ings provisions of paragraphs (1), (2), and (3) of section 101(a) and 



157 

of paragraphs (A), (B), and (C) of section 202(a) of the National 
Emergencies Act. 

(2) The provisions of this section supei^sede the termination provi- 
sions of section 101(a) and of title II of the National Emergencies Act 
to the extent that the provisions of this section are inconsistent with 
these provisions. 

(d) If the President uses the authority of this section to continue 
prohibitions on transactions involving foreign property interests, he 
shall repoi-t to the Congress every six months on the use of such 
authority. 

Sec. 208. If any provision of this Act is lield invalid, the remainder 
of the Act shall not be affected thereby. 

TITLE III— AMENDMENTS TO THE EXPORT 
ADMINISTRATION ACT OF 1969 



6. Johnson Act — Financial Transactions With Foreign Govern- 
ments ^ ^ 

Partial text of Public Law 80-772 [H.R. 3190], 62 Stat. 744; 18 U.S.C. 955, 

approved June 25, 1948 

Whoever, within the United States, purchases or sells the bonds, 
securities, or other obligations of any foreign government or political 
subdivision thereof or any organization or association acting for or on 
behalf of a foreign government or political subdivision thereof, issued 
after April 13, 1934, or makes any loan to such foreign government, 
political subdivision, organization or association, except a renewal or 
adjustment of existing indebtedness, while such government, political 
subdivision, organization or association, is in default in the payment 
of its obligations, or any part thereof, to the United States, shall be 
fined not more than $10,000 or imprisoned for not more than five years, 
or both. 

This section is applicable to individuals, partnerships, corporations, 
or associations other than public corporations created by or pursuant 
to special authorizations of Congress, or corporations in which the 
United States has or exercises a controlling interest through stock 
ownership or otherwise. WTiile any foreign government is a member 
both of the International Monetary Fund and of the International 
Bank for Reconstruction and Development, this section shall not 
apply to the sale or purchase of bonds, securities, or other obligations 
of such g:ovemment or any political subdivision thereof or of any 
organization or association acting for or on behalf of such government 
or political subdivision, or to making of any loan to such government, 
pol itical subdivision, organization, or association. 



1 For text of Foreign Agents Registration Act of 1938, as amended (Public Law 75-583), 
see page 581 of text. 

2 For text of Logan Act — private correspondence with foreign governments (Public Law 
80-722), see page 597. 

(158) 



7. Foreign Investment in the United States 

a. Foreign Investment Study Act of 1974 

Public Law 93-479 [S. 2840], 88 Stat. 1450, approved October 26, 1974 

\N ACT To authorize the Secretary of Commerce and the Secretary of the 

Treasury to conduct a study of foreign direct and portfolio investment in the 
United States, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^semhled^ That this Act may be 
cited as the "Foreign Investment Study Act of 1974". 

Sec. 2. The Secretary of the Treasury and the Secretary of Com- 
merce are hereby authorized and directed to conduct a comprehensive, 
overall study of foreign direct and portfolio investments in the United 
States. 

Sec. 3. The Departments of Commerce and Treasury, in consultation 
with appropriate agencies, shall determine the definitions and limita- 
tions of direct and portfolio investments for the purposes of the study 
authorized in section 2 of this Act. 

Sec. 4. In carrying out the study described in section 2 of this Act, 
the Secretary of Commerce and the Secretary of the Treasury shall, 
respectively and jointly as may be appropriate — 

(1) identify and collect such information as may be required 
to carry out the study authorized in section 2 of this Act ; 

(2) consult with and secure information from (and where 
appropriate the views of) representatives of industry, the financial 
community, labor, agriculture, science and technology, academic 
institutions, public interest organizations, and such other groups 
as the Secretaries deem suitable ; and 

(3) consult and cooperate with other government agencies, 
Federal, State, and local, and, to the extent appropriate, with 
foreign governments and international organizations. 

Sec. 5. The Secretary of Commerce shall carry out that part of the 
study authorized in section 2 of this Act relating to foreign direct 
investment, and shall, among other things, to the extent he determines 
feasible, specifically — 

(1) investigate and review the nature, scope, magnitude, and 
rate of foreign direct investment activities in the United States ; 

(2) survey the reasons foreign firms are undertaking direct 
investment in the United States ; 

(3) identify the processes and mechanisms through which for- 
eign direct investment flows into the United States, the financing 
methods used by foreign direct investors, and the effects of sucn 
financing on American financial markets ; 

(4) analyze the scope and significance of foreign direct invest- 
ment in acquisitions and takeovers of existing American enter- 
prises, the significance of such investments in the form of new 

(159) 



160 

facilities or joint ventures with American firms, and the effects 
thereof on domestic business competition ; 

(5) analyze the concentration and distribution of foreign 
direct investment in specific geographic areas and economic 
sectors ; 

(6) analyze the effects of foreign direct investment on United 
States national security, energy, natural resources, agriculture, 
environment, real property holdings, balance of payments, balance 
of trade, the United States international economic position, and 
various significant American product markets ; 

(7) analyze the effect of foreign direct investment in terms of 
employment opportunities and practices and the activities and 
influence of foreign and American management executives 
employed by foreign firms ; 

(8) analyze the effect of Federal, re^onal. State, and local laws, 
rules, regulations, controls, and policies on foreign direct invest- 
ment activities in the United States; 

(9) compare the purpose and effect of United States, State, 
and local laws, rules, regulations, programs, and policies on for- 
eign direct investment in the United States with laws, rules, 
regulations, programs, and policies of selected nations and areas 
where such comparison may be informative ; 

(10) compare and contrast the foreign direct investment activi- 
ties in the United States with the investment activities of Ameri- 
can investors abroad and appraise the impact of such American 
activities abroad on the investment activities and policies of 
foreign firms in the United States ; 

(11) study the adequacy of information, disclosure, and report- 
ing requirements and procedures : 

(12) determine the effects of variations between accounting, 
financial reporting, and other business practices of American 
and foreign investors on foreign investment activities in the 
United States ; and 

(13) study and recommend means whereby information and 
statistics on foreign direct investment activities can be kept 
current. 

Sec. 0. Tlie Secretary of the Treasury shall carry out that part of 
the study anthoiizod in section 2 of this Act relating to foreign port- 
folio investment, and shall, to the extent he determines feasible, 
spooifically — 

(1) investigate and review the nature, scope, and magnitude 
of foreign portfolio investment activities in the United States; 

(2) survey the reasons for foreign portfolio investment in the 
Ignited States: 

(3) identify the processes and mechanisms through which for- 
eiiin portfolio investment is made in the United States, the fi- 
nancing methods used, and the effects of foreign portfolio invest- 
ment on American financial markets: 

(4) analyze the effects of foreign portfolio investment on the 
United States balance of payments and the United States inter- 
national investment position: 

(5) study and analyze the concentration and distribution of 
foreign portfolio investment in specific United States economic 
sectors: 



161 

(6) study the effect of Federal securities laws, rules, refla- 
tions, and policies on foreign portfolio investment activities in 
the United States; 

(7) compare the purpose and effect of United States, State, 
and local laws, rules, regulations, programs, and policies on for- 
eign portfolio investment in the United States with laws, rules, 
regulations, programs, and policies of selected nations and areas 
where such comparison may be informative; 

(8) compare the foreign portfolio investment activities in the 
United States with information available on the portfolio invest- 
ment activities of American investors abroad ; 

(9) study adequacy of information, disclosures, and reporting 
requirements and procedures; and 

(10) study and recommend means whereby information and 
statistics on foreign portfolio investment activities can be kept 
current. 

POWERS 

Sec. 7. (a) The Secretary of Commerce and the Secretary of the 
iwisury may each by regulation establish whatever rules each deems 
necessary to carry out each of his functions under this Act. 

(b) Each such Secretary may require any person subject to the 
jurisdiction of the United States — 

(1) to maintain a complete iccord of any information (includ- 
ing journals or other books of original entry, minute books, stock 
transfer records, lists of shareholders, or financial statements) 
which such Secretary determines is germane to his functions in 
the foreign direct investment and foreign portfolio investment 
studies to be conducted pursuant to this Act ; and 

(2) to furnish under oath any report containing whatever infor- 
mation such Secretary determines is necessary to carry out his 
functions in such studies. Whenevei- an ordei- under clause (2) 
of this subsection requires a person to produce information which 
can be specifically identified as being part of the records of its 
customers, the Secretary shall, upon being provided the names 
and addresses of such customers, send a notice to such customei*s 
that information from their records will be disclosed pursuant 
to this Act ; Provided. That this requirement shall not apply when 
such person is directly involved in the OAvnci-ship or management 
of assets for the customer as nominee, agent, partner, fiduciary, 
trustee, or in a similar relationship. 

The authority of each Secretary under this subsection shall expire on 
the date provided under section 10 of this Act for the Secretary of 
Commerce and the Secretary of the Treasury to submit a full and com- 
plete report to the Congress. 

(c) In addition to the Secretary of Commerce and the Secretary 
of the Treasury, the only individuals who may have access to informa- 
tion furnished under subsection (b) (2) are those sworn employees, 
including consultants, of the Department of Commerce or Depart- 
ment of the Treasury designated by the Secretary of either such 
Department. Neither such Secretary nor any such employee may — 

(1) use any information furnished under subsection (b)(2) 
except for analytical or statistical purposes within the United 
States Government ; or 



162 

(f ) publish, or make available to any other person in any man- 
ner, any such information in a manner that the information 
furnished under subsection (b) (2) by any person can be spe- 
cifically identified, except for the purposes of a proceeding under 
section 8. 
Such Secretaries may exchange any such information furnished under 
subsection (b) (2) in order to prevent any duplication or omission in 
the studies conducted by each such Secretary pursuant to this Act. 
(d) Except for the requirement under subsection (b) (2), no agency 
of the United States or employee thereof may compel (1) the Secre- 
tary^ of Commerce or the Secretary of the Treasury, (2) any individual 
designated by either such Secretary under the first sentence of subsec- 
tion (c), or (3) any person which maintained or furnished any repoi;t 
under subsection (b), to submit any such report or constituent part 
thereof to that agency or any other agency of the United States. 
Without the prior written consent of the person which maintained or 
furnished any report under subsection (b) and without the prior writ- 
tcn'consent of the customer, where the person maintained or furnished 
any^ such report which included information identifiable as being 
derived from the records of such customer, such report or any such 
constituent part may not be produced for any judicial or administra- 
tive proceeding, except for a proceeding under section 8(b) of this 
Act. 

ENFORCEMENT 

Sec. 8. (a) Whoever fails to furnish any information required pur- 
suant to the authority of this Act, whether required to be furnished in 
the form of a report or otherwise, or to comply with any rule, regu- 
lation, order, or instruction promulgated pursuant to the authority of 
this Act may be assessed a civil penalty not exceeding $10,000 in a 
proceeding brought under subsection (b) of this section. 

(b) Whenever it appears to either the Secretary of the Treasury 
or the Secretary of Commerce that any person has failed to furnish 
any information required pursuant to the provisions of this Act, 
whether required to be furnished in the form of a report or otherwise, 
or has failed to comply with any rule, regulation, order, or instruction 
promulgated pursuant to the authority of this Act, such Secretary 
may in nis discretion bring an action, in the proper district court of 
the United States or the proper United States court of any territory or 
other place subject to the jurisdiction of the United States, seeking a 
mandatory injunction commanding such person to comply with such 
rule, regulation, order, or instruction, and upon a proper showing by 
such Secretary of the relevance to the purposes of the Act of such rule, 
regulation, order, or instruction, a permanent or temporary injunction 
or restraining order shall be granted without bond, and such person, 
may also be subject to the civil penalty provided in subsection (a) of 
this section if the jud^e finds that sucn penalty is necessary to obtain 
compliance with such injunction or restraining order. 

(c) Whoever willfully fails to submit any information required 
pursuant to this Act, whether required to be furnished in the form of 
a report or otherwise, or willfully violates any rule, regulation, order, 
or instruction promulgated pursuant to the authority of this Act shall, 
upon conviction, be fined not more than $10,000 or, if a natural person. 



163 

may be imprisoned for not more than one year or both; and anj 
officer, director, or agent of any corporation who knowingly partici- 
pates in such violation may be punisned by a like fine, imprisonment, 
or both. 

Sec. 9. (a) The Secretary of Commerce and the Secretary of the 
Treasury may procure the temporary or intermittent services of ex- 
perts and consultants in accordance with the provisions of section 
3109 of title 5, United States Code. Persons so employed shall receive 
compensation at a rate to be fixed by the Secretaries concerned but not 
in excess of the maximum amount payable under such section. While 
away from his home or regular place of business and engaged in the 
performance of services for the Department of Commerce or the De- 
partment of the Treasury in conjunction with the provisions of this 
Act, any such person may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5703(b) of title 5, 
United States Code, for persons in the Government service employed 
intermittently. 

(b) The Secretary of Commerce and the Secretary of the Treasury 
are authorized, on a reimbursable basis when appropriate, to use the 
available services, equipment, personnel, and facilities of any agency 
or instrumentality of the Federal Government in conjunction with the 
study authorized in this Act. 

Sec. 10. The Secretary of Commerce and the Secretary of the Treas- 
ury shall submit to the Congress an interim report twelve months 
after the date of enactment of this Act, and not later than one and one- 
half years after enactment of this Act, a full and complete report of 
the findings made under the study authorized by this Act, together 
with such recommendations as they consider appropriate. 

Sec. 11. There is authorized to be appropriated a sum not to exceed 
$3,000,000 to carry out the purposes of this Act. Any funds so appro- 
priated shall remain available until expended. 



b. Executive Order 11858, May 7, 1975, 40 F.R. 20263 

By virtue of tlic authority vested in me by the Constitution and 
statutes of the United States of America, inchidin^ the Act of Febru- 
ary 14, 1903, as amended (15 U.S.C. 1501 et seq.), section 10 of the 
Gold Reserve Act of 1934, as amended (31 U.S.C. 822a), and section 
301 of title 3 of the United States Code, and as President of the United 
States of America, it is hereby ordered as follows : 

Section 1. (a) There is hereby established the Committee on For- 
eign Investment in the United States (hereinafter referred to as the 
Committee). The Committee shall be composed of a representative, 
whose status is not below that of an Assistant Secretary, designated 
by each of the following : 

(1) The Secretary of State. 

(2) The Secretary of the Treasury. 

(3) TheSecretary of Defense. 

(4) The Secretary of Commerce. 

(5) The Assistant to the President for Economic Affairs. 

(6) The Executive Director of the Council on International Eco- 
nomic Policy. 

The representative of the Secretary of the Treasury shall be the 
chairman of the Committee. The chairman, as he deems appropriate, 
may invite representatives of other departments and agencies to par- 
ticipate from time to time in activities of the committee. 

(b) The Committee shall have primary continuing responsibility 
within the executive branch for monitoring the impact of foreign 
investment in the United States, both direct and portfolio, and for 
coordinating the implementation of U.S. policy on such investment. 
In fulfillment of this responsibility, the committee shall : 

(1) arrange for the preparation of analyses of trends and signifi- 
cant developments in foreign investments in the United States; 

(2) provide guidance on arrangements with foreign governments 
for advance consultations on prospective major foreign governmental 
investments in the United States; 

(3) review investments in the United States which, in the judgment 
of the committee, might have major implications for U.S. national 
interests: and 

(4) consider proposals for new legislation or regulations relating to 
foreign investment as may appear necessary. 

(c) As the need arises, the Committee shall submit recommendation? 
and analyses to the Xational Security Council and to the Economic 
Policy Board. It shall also arrange for the preparation and publica- 
tion of periodic reports. 

(164) 



165 

Sec. 2. The Secretary of Commerce, with respect to the collection 
and use of data on foreign investment in the United States, shall 
provide, in particular, for the performance of the following activities: 

(a) The obtainment, consolidation, and analysis of information on 
foreign investment in the United States; 

(b) the improvement of procedures for the collection and dissemi- 
nation of information on such foreign investment ; 

(c) the close observation of foreign investment in the United States; 

(d) the preparation of reports and analyses of trends and of signifi- 
cant developments in appropriate categories of such investment; 

(e) the compilation of data and preparation of evaluations of sig- 
nificant investment transactions; and 

(f) the submission to the Committee of appropriate reports, analy- 
ses, data and recommendations relating to foreign investment in the 
United States, including recommendations as to how information 
on foreign investment can be kept current. 

Sec. 3. The Secretary of tlie Treasury is authorized, without further 
approval of tlie President, to make reasonable use of the resources 
of the Exchange Stabilization Fund, in accordance with section 10 
of the Gold Reserve Act of 1934, as amended (31 U.S.C. 822a), to 
pay any of the expenses directly incurred by the Secretary of Com- 
merce in the performance of the functions and activities provided 
by this order. This authority shall be in effect for one year, unless 
revoked prior thereto. 

Sec. 4. All departments and agencies are directed to provide, to the 
extent permitted by law, such information and assistance as may be 
requested by the Committee or the Secretary of Commerce in carry- 
ing out their functions and activities under this order. 

Sec. 5. Information which has been submitted or received in confi- 
dence shall not be publicly disclosed, except to the extent required by 
law; and such information shall be used by the Committee only for 
the purpose of carrying out the functions and activities prescribed 
by this order. 

Sec. 6. Nothing in this order shall affect the data-gathering, regu- 
latory, or enforcement authority of any existing department or agency 
over foreign investment, and the review of individual investments 
provided by this order shall not in any way supersede or prejudice 
any other process provided by law. 



c. International Investment Survey Act of 1976 

Text of Public Law 94-472 [S. 2839], 90 Stat. 2059, approved October 11, 1976 

AN ACT To supplement the authority of the President to collect regular and 
periodic information on international investment. 

Be it eno,cted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

SHORT TITLE 

Section 1. This Act may be cited as the "International Investment 
Survey Act of 1976". 

FINDINGS AND PURPOSE 

Sec. 2. (a) The Congress finds and declares that — 

(1) the United States Government is presently authorized to collect 
limited amounts of information on United States investment abroad 
and foreign investment in the United States; 

(2) international investment has increased rapidly within recent 
years ; 

(3) such investment si^ificantly affects the economies of the United 
States and other nations ; 

(4) international efforts to obtain information on the activities 
of multinational enterprises and other international investors have 
accelerated recently ; 

(5) the potential consequences of international investment cannot 
be evaluated accurately because the United States Government lacks 
sufficient information on such investment and its actual or possible 
effects on the national security, comnierro. employment, inflation, gen- 
eral welfare, and foreign policy of the United States; 

(6) accurate and comprehensive information on international in- 
vestment is needed by the Congress to develop an informed United 
States policy on such investment ; and 

(7) existing estimates of international investment, collected under 
existing legal authority, are limited in scope and are based on out- 
dated statistical bases, reports, and information which are insufficient 
for policy formulation and decisionmaking. 

(b) It is therefore the purpose of this Act to provide clear and 
unambiguous authority for the President to collect information on 
international investment and to provide analyses of such information 
to the Congress, the executive agencies, and the general public. It is 
the intent of the Congress that information which is collected from 
the public imder this Act be obtained with a minimum burden oti 
business and other respondents and with no unnecessary duplication 
of effort, consistent with the national interest in obtaining comprehen- 
sive and reliable information on international investment. 

(166) 



167 

(c) Nothing in this Act is intended to restrain or deter forei^i 
investment in the United States or United States investment abroad. 

DEFINITIONS 

Sec. 3. As used in this Act, the term — 

(1) "United States'', when used in a geographic sense, means the 
several States, the District of Cohnnbia, the Commonwealth of Puerto 
Rico, the Canal Zone, and all territories and possessions of the United 
States; 

(2) "foreign'', when used in a geographic sense, means that which is 
situated outside the United States or which belongs to or is character- 
istic of a country other than the United States; 

(3) "person" means any individual, branch, partnership, associated 
group, association, estate, trust, corporation, or other organization 
(whether or not organized under the laws of any State), and any 
g-overnment (including a foreign govern-ment, the United States 
Government, a State or local government, and any agency, corporation, 
financial institution, or other entity or instrumentality thereof, includ- 
ing a government-sponsored agency) ; 

(4) "United States person" means any person resident in the United 
States or subject to the jurisdiction of the United States; 

(5) "foreign person" means any person resident outside the United 
States or subject to the jurisdiction of a country other than the United 
States; 

(6) "business enterprise" means any organization, association, 
branch, or venture which exists for profit-making purposes or to other- 
wise secure economic advantage, and any ownership of any real estate; 

(7) "parent" means a person of one country who, directly or indi- 
rectly, owns or controls 10 per centum or more of the voting stock of 
an incorporated business enterprise, or an equivalent ownership inter- 
est in an unincorporated business enterprise, which is located outside 
that country; 

(8) "affiliate" means a business enterprise located in one country 
which is directly or indirectly owned or controlled by a person of 
another country to the extent of 10 per centum or more of its voting 
stock for an incorporated business or an equivalent interest for an un- 
incorporated business, including a branch; 

(9) "international investment" means (A) the ownership or control, 
directly or indirectly, by contractual commitment or otherwise, by 
foreign persons of any interest in property in the United States, or of 
stock, other securities, or short- and long-term debt obligations of a 
U'Mted States person, and (B) the ownership or control, directly or in- 
directly, by contractual commitment or otlierwise, by United States 
persons of any interest in property outside the United States, or of 
stock, other securities, or short- and long-term debt obligations of a 
foreiorn person ; 

(10) "direct investment" means the ownership or control, directly or 
iTi directly, by one person of 10 per centum or more of the voting 
securities of an incorporated business enterprise or an equivalent inter- 
est in an unincorporated business enterprise: and 

(11) "portfolio investment" means any international investment 
which is not direct investment. 



168 

AUTHORITY AND DUTIES 

Sec. 4. (a) The President shall, to the extent he deems necessary and 
feasible — 

(1) conduct a regular data collection program to secure current in- 
formation on international capital flows and other information related 
to international investment, including (but not limited to such 
information as may be necessary for computing and analyzing the 
United States balance of payments), the employment and taxes of 
United States parents and affiliates, and the international investment 
position of the United States ; 

(2) conduct such studies and surveys as may be necessary to prepare 
reports in a timely manner on specific aspects of international invest- 
ment which may have significant implications for the economic welfare 
and national security of the United States ; 

(3) study the adequacy of information, disclosure, and reporting 
requirements and procedures relating to international investment; 
recommend necessary improvements in information recording, col- 
lection, and retrieval and in statistical analysis and presentation 
relating to international investment; and report periodically to the 
Committees on Foreign Relations and Commerce of the Senate and the 
Committee on International Relations of the House of Representatives 
on national and international developments with respect to laws and 
regulations affecting international investment; and 

(4) publish for the use of the general public and United States 
Government agencies periodic, regular, and comprehensive statistical 
information collected pursuant to this subsection and to the benchmark 
surveys conducted pursuant to subsections (b) and (c). 

(b) With respect to the United States direct investment abroad and 
foreign direct investment in the United States, the President shall con- 
duct a comprehensive benchmark survey at least once every five years 
and, for such purpose, shall, among other things and to the extent he 
determines necessary and feasible — 

(1) identify the location, nature, and magnitude of, and changes in 
total investment by any parent in each of its affiliates and the financial 
transactions between any parent and each of its affiliates; 

(2) obtain (A) information on the balance sheets of parents and 
affiliates and related financial data, (B) income statements, including 
the gross sales by primary line of business (with as much product line 
detail as is necessary and feasible) of parents and affiliates in each 
country in which they have significant operations, and (C) related in- 
formation regarding trade between a parent and each of its affiliates 
find between each parent or affiliate and any other person ; 

(3) collect employment data showing both the number of United 
States and foreign employees of each parent and affiliate and the levels 
of compensation, by country, industry, and skill level ; 

(4) obtain information on tax payments by parents and affiliates 
by country ; and 

(5) determine, by industry and country, the total dollar amount of 
research and development expenditures by each parent and affiliate, 
payments or other compensation for the transfer of technology between 
parents and their affiliates, and payments or other compensation re- 
ceived by parents or affiliates from the transfer of technology to other 
persons. 



169 

(c)(1) The President shall conduct a comprehensive benchmark 
survey of forei^i portfolio investment in the United States at least 
once every five yeais and, for such purposes, shall (amon^ other things 
and to the extent he determines necessary and feasible) determine the 
maofnitude and ag<rrppate value of portfolio investment, form of in- 
vestments, types of investoi-s, nationality of investors and recorded 
residence of forei<rn private holders, diversification of holdings by 
economic sector, and h()ldei*s of record. 

(2) In addition to the l)enchmark surveys conducted pursuant to 
paragraph (1), the President shall conduct a benchmark survey of 
United States portfolio investment abroad and, for such purpose, shall 
(among other things and to the extent he determines necessary and 
feasible) determine the magnitude and aggregate value of portfolio 
investment, form of investments, types of investoi*s, nationality of 
investors and recorded residence of private holders, diversification of 
holdings by economic sector, and holders of record. The President 
shall complete such survey not later than the end of the five-year period 
beginning on the date of enactment of this Act. After completion of 
such survey, the President shall report to the Congress on the feasi- 
bility and desirability of conducting, on a periodic basis, additional 
benchmark surveys of United States portfolio investment abroad. 
If he determines that such additional benchmark surveys are feasible 
and desirable, he may conduct such surveys. 

(d) The President shall conduct a study of the feasibility of estab- 
lishing a system to monitor foreign direct investment in agricultural, 
rural, and urban real property, including the feasibility of establishing 
a nationwide multipurpose land data system, and shall submit his find- 
ings and conclusions to the Congress not later than two years after 
the enactment of this Act. 

(e) Activities shall be conducted so that information obtained pur- 
suant to this Act shall be timely and useful in the development of 
policy with respect to international investment. Reporting and record- 
keeping requirements imposed under this Act shall be designed in 
order to minimize costs to the extent feasible, consistent with effective 
enforcement and the compliation of information required by this Act. 
Reporting, recordkeeping, and documentation requirements shall be 
periodically reviewed and revised in the light of developments in the 
field of information technology. 

(f) In collecting information under this Act, the President shall 
give due regard to the costs incurred by persons supplying such infor- 
niation, as well as to the costs incurred by the Government, and shall 
insure that the information collected is only in such detail as is neces- 
sary to fulfill the stated purposes for which the information is being 
gathered. 

RULES AND REGULATIONS; ACCESS TO INFORMATION 

Sec. 5. (a) The authorities and responsibilities under this Act may 
be exercised through such rules and regulations as may be necessary 
to carry out the purposes of this Act. 

(b) Rules or regulations issued pursuant to this Act may require 
any person subject to the jurisdiction of the United States — 

(1) to maintain a complete record of any information (including 
journals or other books of original entry, minute books, stock transfer 



170 

records, lists of shareholders, or financial statements) which is essen- 
tial to carrying out the international investment surveys and studied! 
to be conducted under this Act ; and 

(2) to furnish, under oath, any report containing information which 
is determined to be necessai y to carry out the international investment- 
surveys and studies conducti'd under this Act. 

(c) Access to information obtained under subjection (b) (2) of thie 
section shall be available only to officials or employees designated to 
perform functions under this Act, includinjr consultants and persons 
workinq: on contracts awarded pursuant to this Act. Subject to the 
limitation of para^rraph (1) of this pubsection, the President may au- 
thorize the exchange between a<rencies or officials designated by him of 
information furnished by any person under this Act as he deems neces- 
sary to carry out the purposes of this Act. Nothing in this section shall 
be construed to require an> Federal agency to disclose to any official 
exercising authority under 1 his Act any information or report collected 
under legal authority other than this Act where disclosure is prohibited 
by law. Information collected pursuant to subsection (b) (2) may be 
used only — 

(1) for analytical or statistical purposes within the United States 
Government; or 

(2) for the purpose of a proceeding under subsection (d) of this 
section or under section 6 (b) or (c). 

No official or employee designated to perform functions under this 
Act, including consultants and persons working on contracts awarded 
pursuant to this Act, may publish or make available to any other 
person any information cc/llected pursuant to subsection (b) (2) in a 
manner that the person who furnished the information can be 
specifically identified except as provided in this section. No person 
can compel the submission or disclosure of any report or constituent 
part thereof collected pursuant to this Act, or any copy of such repoit 
or constitutent part thereof, without the prior written consent of the 
person who maintained or furnished such report under subsection 
(b) and without prior written consent of the customer, where the 
person who maintained or furnished such report included information 
identifiable as being derived from the records of such customer. 

(d) Any person who willfully violates subsection (c) shall, upon 
conviction, be fined not more than $10,000, in addition to any other 
penalty imposed by law. 

ENFORCEMENT 

Sec. 6. (a) Whoever fails to furnish any information required 
under this Act, whether required to be furnished in the form of a 
report or otherwise, or to comply with any rule, regulation, order, 
or instruction promulgated under this Act, may be subject to a civil 
penalty not exceeding $10,000 in a proceeding brought under sub- 
section (b) of this section. 

(b) "Whenever it appears that any person has failed to furnish any 
inform.ation required under this Act, Avhether required to be furnished 
in the form of a report or otherwise, or has failed to comply with 
any rule, regulation, order, or instruction promulgated under this 
Act, a civil action may be brought in an appropriate district court 
of the United States, or the appropriate United States court of any 
territory or other place subject to the jurisdiction of the United 



171 

States, and such couit may enter a restraining order or a permanent 
or temporary injunction commandin^^ such jx'rson to furnish such 
information or to comply with sucli rule, regulation, order, or instruc- 
tion, as the case may be, or impose the civil penalty provided in sub- 
section (a) of this section, or both. 

(c) AVhoever willfully fails to submit any information required 
under this Act, whether reciuired to be furnished in the form of a 
report or otherwise, or willfully violates any rule, regulation, order, 
or instruction promulgated under this Act, upon conviction, shall be 
fined not more than $10,000 and, if an individual, may be imprisoned 
for not more than one year, or both, and any officer, director, employee, 
or agent of any corporation who knowingly participates in such 
violation, upon conviction, may be punished by a like fine, imprison- 
ment, or both. 

USE OF EXPERTS AND ADMINISTRATIVE SUPPORT SERVICES 

Sec. 7. (a) Any official designated by the President to carry out this 
Act may procure the temporary or intermittent services of experts 
and consultants in accordance with the provisions of section 3109 of 
title 5, United States Code. Persons so employed shall receive com- 
pensation at a rate not in excess of the maximum amount payable 
under such section. While away from his home or regular place of 
business and engaged in the performance of services in conjunction 
with the provisions of this Act, any such person may be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
section 5703(b) of title 5, United States Code, for persons in the 
Government service employed intermittently. 

(b) Any official designated by the President to carry out this Act 
may use, on a reimbursable basis when appropriate (as determined 
by the President), the available services, equipment, personnel, and 
facilities of any agency or instrumentality of the United States 
Government. 

CONSULTATIOXS AND REVIEWS 

Sec. 8. (a) Officials performing functions pursuant to this Act 
shall secure balanced, diverse, and responsible views from qualified 
persons representing business, organized labor, and the academic 
community and may, where appropriate, create such independent 
public advisory committees as are necessary to carry out the purposes 
of this Act. 

(b) It shall be the responsibility of the Council on International 
Economic Policy to review the results of any studies and surveys 
conducted pursuant to this Act and report annually to the Committee 
on International Relations of the House of Representatives and the 
appropriate committees of the Senate on any trends or developments 
which may have national policy implications and which in the Coun- 
cil's opinion warrant the review of the respective committees. 

AUTHORIZATIONS OF APPROPRIATIONS 

Sec. 9. To carry out this Act, there is authorized to be appropriated 
$1,000,000 for the fiscal year ending September 30, 1978, and $1,000,- 
000 for the fiscal year endin// September 30, 1979. 



d. Executive Order 11961, January 19, 1977, 42 F.R. 4321 

Administration of the International In\t:stment Survey Act of 

1976 

By virtue of the authority vested in me by the International Invest- 
ment Survey Act of 1976 (90 Stat. 2059, 22 U.S.C. 3101), and section 
301 of title 3 of the United States Code, and as President of the United 
States of America, it is hereby ordered as follows : 

Section 1. All the functioned vested in the President by the Interna- 
tional Investment Survey Act of 1976 (90 Stat. 2059, 22 U.S.C. 3101), 
hereinafter referred to as the Act, are hereby delegated to the Director 
of the Office of Management and Budget, hereinafter referred to as the 
Director. The Director may, from time to time, designate other officers 
or agencies of the Federal Government to perform any or all of the 
functions hereby delegated to the Director, subject to such instructions, 
limitations, and directions as the Director deems appropriate. 

Sec. 2. Subject to the provisions of section 1 of this order, and in 
the absence of any contrary delegation or direction by the Director, the 
Secretary of the Treasury, with respect to portfolio investment shall 
perform the functions set forth in sections 4(a) (1), (2), (4) and 4(c) 
of the Act. 

Sec. 3. Subject to the provisions of section 1 of this order, and in 
the absence of any contrary delegation or direction by the Director, the 
Secretary of Commerce, with respect to direct investment, shall per- 
form the functions set forth in sections 4(a) (1), (2), (4) and 4(b) of 
the Act. 

Sec. 4. Subject to the provisions of section 1 of this order, and in 
the absence of any contrary delegation or direction by the Director, the 
Council on International Economic Policy shall perform the function 
of making periodic reports to the Committees of the Congress as set 
forth in Section 4(a) (3) of the Act. 

(172) 



e. Executive Order 11962, January 19, 1977, 42 F.R, 4323 

Establishing the President's Advisory Board on International 

Investment 

By virtue of the authority vested in me by the Constitution and stat- 
utes of the United States of America, including section 8(a) of the In- 
ternational Investment Survey Act of 1976 (90 Stat. 2064, 22 U.S.C. 
3107), and as President of the United States of America, in accord- 
ance with the provisions of the Federal Advisory Committee Act (5 
U.S.C. App. I) it is hereby ordered as follows : 

Section 1. (a) There is hereby established the President's Advisory 
Board on International Investment, hereinafter referred to as the 
Board which shall be composed of not more than fifteen members who 
shall be appK)inted by the President. Each member shall serve for a 
term limited to the remaining life of the Board as determined at the 
time of appointment. 

(b) The President shall designate a Chairman and Vice Chairman 
from among the members. 

Sec. 2. (a) Whenever requested, tlie Board shall advise the Execu- 
tive Director of the Council on International Economic Policy, herein- 
after referred to as the Executive Director, the Director of the Office of 
Management and Budget, and the heads of other agencies, with respect 
to matters relating to the performance of their functions under the In- 
ternational Investment Survey Act of 1976 (90 Stat. 2059, 22 U.S.C. 
3101). 

(b) In making its recommendations, the Board shall give due con- 
sideration to the usefulness of data to be collected as compared to the 
burden imposed on those who are to furnish the data. 

Sec. 3. (a) The Executive Director sliall, to the extent permitted by 
law, provide administrative and staff services, support, and facilities 
for the Board. 

(b) The Executive Director shall appoint an Executive Secretary 
for the Board. 

Sec. 4. Members of the Board mav be compensated for their services 
in accord with 5 U.S.C. 3109, and may, to the extent permitted by law, 
be allowed travel expenses, including per diem in lieu of subsistence. 
as authorized by law (5 U.S.C. 5702 and 5703) for persons in the gov- 
ernment service employed intermittently. 

Sec. 5. Xotwithstandinnr the provisions of any other Executive order, 
the functions of the President under the Federal Advisory Committee 
Act (5 U.S.C. App. I), except that of reporting: annually to the Con- 
gress which are applicable to the Board, shall be performed by the 
Executive Director in accordance with guidelines and procedures es- 
tablished bv the Office of Management and Budget. 

Sec. 6. The Board shall terminate on December 31. 1978, unless 
sooner extended. 

(173) 



8. Resolution With Respect to the World Food Situation 

Considered and agreed to by the House [H. Res. 1399, 93d Congress] 
December 9, 1974. 

Resolution 

Whereas the current world food supply, including reserves, is dan- 
gerously low, with millions of people in South Asia and in the 
African Sahel facing famine ; and 

Whereas higher prices for food, energy, and fertilizer, together with 
fertilizer shortages, are causing particular hardship to poor de- 
veloping nations ; and 

Whereas rapid population growth aggravates food shortages, and de- 
clines in population growth rates historically have been associated 
with economic and social progress ; and 

Whereas the xVmerican people have a long and proud tradition of 
combating hunger at home and abroad ; and 

Whereas it is in the interest of the United States and of all other 
nations to overcome food shortages, which cause human suffering, 
breed economic and political instability, and raise food prices 
both at home and abroad ; and 

Whereas the world community has recognized the dimensions of the 
crisis by convening the World Population Conference and the 
World Food Conference this year ; and 

Whereas President Ford in his address to the 1974 United Nations 
General Assembly recognized the urgency of the world food crisis 
and pledged (1) substantially increased United States assistance 
to agricultural production programs in other countries, (2) 
United States support for an international system of food reserves, 
and (3) increased United States spending for food shipments to 
needy nations : Now, therefore, be it 
Resolved^ That it is the sense of the House of Representatives that — 

(1) the United States should vigorously pursue efforts to help 
poor countries (A) increase agriculture production, especially 
through labor intensive, small farm agriculture, (B) promote eco- 
nomic and social development programs, and (C) assist in popula- 
tion programs, when requested, including continued encourage- 
ment of voluntary family planning ; and 

(2) increased food aid should be provided as needed to meet 
specific short-term emergencies ; and 

(3) planning should be undertaken immediately by appropriate 
Government agrencies to enable the United States to provide the 
increased food aid, including plans to prevent any increased do- 
mestic inflation as a result of United States relief shipments ; and 

(4) all nations — including industrial and food-exporting coun- 
tries, oil-exporting countries, and the developing countries them- 
selves — should join in the effort to combat food shortages ; and 

(174) 



175 

(;">) international agreement should be sought for a system of 
food reserves to meet food shortage emergencies and to provide 
insurance against unexpected shortfalls in food production, with 
costs to be ecjuitably shared and farmers given firm safeguards 
against market price disruption from such a system; and 

(0) the President should encourage reduction in domestic con- 
sumption of fertilizer for nonfarm purposes in order to increase 
fertilizer supplies for the production of food in this country and 
in the developing countries, and sliould undertake efforts to stimu- 
late increased world fertilizer production both here and abroad. 



9. Collection and Publication of Foreign Commerce and 
Trade Statistics 

Public Law 87-826, approved Oct. 15, 1962, 76 Stat. 951-52 (13 U.S.C. 301-307) 

§ 301. Collection and publication. 

The Secretary is authorized to collect information from all persons 
exporting from, or importing into, the United States and the noncon- 
tiguous areas over which the United States exercises sovereignty, juris- 
diction, or control, and from all persons engaged in trade between the 
United States and such noncontiguous areas and between those areas, 
or from the owners, or operators of carriers engaged in such foreign 
commerce or trade, and shall compile and publish such information 
pertaining to exports, imports, trade, and transportation relating 
thereto, as he deems necessary or appropriate to enable him to foster, 
promote, develop, and further the commerce, domestic and foreign, of 
tlic United States and for other lawful purposes. 

Effective Date 

Section 4 of Pub. L. 87-826 provided that : "The provisions of this Act [enacting 
this chapter and repealing sections 173. 174, 177. 179. 181, 184 — 187. and 193 of 
Title 15, Commerce and Trade, sections 92 and 95 of Title 46, Shipping and section 
1486 of Title 48 Territories and Insular Possessions] shall take effect one hundred 
and eighty days after approval [Oct. 15. 1962], except that the last sentence 
of section 337, "Fifth" of the Revised Statutes [section 174 of Title 15], and the 
requirement for oaths as found in section 4200 of the Revised Statutes [section 
92 of Title 46] shall be repealed effective on the date this Act is approved [Oct. 15, 
1962]." 

§ 302. Rules, regulations, and orders. 

The Secretary may make such rules, regulations, and orders as he 
deems necessary' or appropriate to carry out the provisions of this 
chapter. Any rules, regulations, or orders issued pursuant to this au- 
thority may be established in such form or manner, may contain such 
classifications or differentiations, and may provide for such adjust- 
ments and reasonable exceptions as in the judgment of the Secretary 
are necessary or proper to effectuate the purpose of this chapter, or to 
prevent circumvention or evasion of any rule, regulation, or order 
issued hereunder. The Secretary may also provide by rule or regula- 
tion, for such confidentiality, publication, or disclosure, of information 
'Collected hereunder as he may deem necessary- or appropriate in the 
public interest. Rules, regulations, and orders, or amendments there- 
to shall have the concurrence of the Secretary of the Treasury prior to 
promulgation. 

§ 303. Secretary of Treasury functions. 

To assist the Secretary to carry out the provisions of this chapter, 
the Secretary of the Treasury shall collect information in the form and 

(176) 



177 

manner prescribed by the regulations issued pursuant to this chapter 
from persons engaged in foreign commerce or trade, other than by 
mail, and from the owners or operators of carriers. 

§ 304. Filing export information, delayed filings, penalties for fail- 
ure to file. 

(a) The information or reports in connection with the exportation or 
transportation of cargo required to be field by carriers with the Sec- 
retary of the Treasury under any rule, regulation, or order issued pur- 
suant to this chapter may be filed after the departure of such carrier 
from the port or place of exportation or transportation, whether such 
departing carrier is destined directly to a foreign port or place or to a 
noncontiguous area, or proceeds by way of other ports or places of the 
United States, providea that a bond in an approved form in the penal 
sum of $1,00() is filed with the Secretary of the Treasury. The Secretary 
of Commerce may, by a rule, regulation, or order issued in conformity 
herewith, prescribe a maximum period after such departure during 
which the required information or reports may be file<l. In the event 
any such information or report is not filed within such prescribed pe- 
riod, a penalty not to exceed $100 for each day's delinquency beyond the 
prescribed period, but not more than $1,000 shall be exacted. Civil suit 
may l^e instituted in the name of the United States against the principal 
and surety for the recovery of any penalties that may accrue and be ex- 
acted in accordance with the terms of the bond. 

(b) The Secretary may remit or mitigate any penalty incurred for 
violations of this section and regulations issued pursuant thereto if, in 
his opinion, they were incurred without willful negligence or fraud, or 
other circumstances justify a remission or mitigation. 

Section Referred to in Other Sections 

This section is referred to in section 305 of this title, 
§ 305. Violations, penalties. 

Any person, including the owners or operators of carriers, violating 
the provisions of this chapter, or any rule, regulation, or order issued 
thereunder, except as provided in section 304 above, shall be liable to a 
penalty not to exceed $1,000 in addition to any other penalty imposed 
by law. The amount of any such penalt}' shall be payable into the Treas- 
ury of the United States and shall be recoverable in a civil suit in the 
name of the United States. 

§ 306. Delegation of functions. 

Subject to the concurrense of the head of the department or agency 
concerned, the Secretary may make such provisions as he shall deem 
appropriate, authorizing the performance by any officer, agency or em- 
ployee of the United States Government departments or offices, or the 
governments of any areas over which the United States exercises sov- 
ereignty, jurisdiction, or control, of any function of the Secretary, con- 
tained in this chapter. 

§ 307. Relationship to general census law. 

The following sections only, 1, 2, 3, 4, 5, 6, 7, 11, 21, 22, 23, 24, 211, 
212, 213, and 214, of chapters 1 through 7 of this title are applicable to 
this chapter. 



H. FINANCIAL INSTITUTIONS 

CONTENTS 

Page 

1. Export-Import Bank Act of 1945, as amended (Public Law 79-173) __ 181 

2. Export Expansion 192 

a. Public Law 9(>-390 ( Improving the U.S. Balance of Payments)— 192 

b. Executive Order 11420 (Establishing the Export Expansion Ad- 

visory Committee) 194 

3. Bretton Woods Agreements Act, as amended (Public Law 79-171) 195 

4. Special Drawing Rights Act, as amended (Public Law 90-349) 207 

5. Par Value Modification Act, as amended (Public Law 92-268) 210 

6. Providing Amendments to the Bretton Woods Agreement Act (Public 

Law 94-564) 212 

7. Foreign Currency Reports (Public Law 93-110) (partial text) 214 

8. Executive Order 11269, as amended (National Advisory Council on In- 

ternational Monetary and Financial Policies) 216 

9. International Finance Corporation Act, as amended (Public Law 

84-350) 218 

10. Inter- American Development Bank Act, as amended (Public I^aw 

86-147) 221 

11. International Development Association Act, as amended (Public Law 

86-565) 231 

12. Asian Development Bank Act, as amended (Public Law 81>-369) 236 

13. African Development Fund Act, as amended (Public Law 94-302) 

(partial text) 242 

14. International Financial Institutions (Public Law 95-118) (partial 

text) 245 

15. Convention on the Settlement of Investment Disputes Act of 1966 

(Public Law 89-532) 249 



(179) 



I 



1. Export-Import Bank Act of 1945, as Amended 

Public Law 79-173 CH.R. 3771], 59 Stat. 526, approved July 31, 1945, as amended 
by Public Law 79-282 [H.R. 4683], 59 Stat. 666, approved December 28, 1945; 
Public Law 80-89 [S. 993], 61 Stat. 130, approved June 9, 1947; Public Law 82- 
158 [S. 2006], 65 Stat. 367, approved October 3, 1951; Public Law 83-30 [H.R. 
4465], 67 Stat. 28, approved May 21, 1953; Public Law 83-570 [S. 3589], 68 Stat. 
677, approved August 9, 1954; Public Law 83-779 [H.R. 9730], 68 Stat. 1237, 
approved September 3, 1954, Public Law 8S-55 [H.R. 4136], 71 Stat. 82, ap- 
proved June 17, 1957; Public Law 85-424 [S. 3149], 72 Stat. 133, approved May 22, 
1958; Public Law 87-311 [S. 2325], 75 Stat. 673, approved September 26, 1961; 
Public Law 88-101 [H.R. 3872], 77 Stat. 128, approved August 20, 1963; Public 
Law 89-348 [S. 2150], 79 Stat. 1312, approved November 8, 1965; Public Law 90- 
267 [S. 1155], 82 Stat. 47, approved March 13, 1968; Public Law 92-126 [S. 581], 
86 Stat. 345, approved August 17, 1971; Public Law 93-331 [SJ. Res. 218], 
88 Stat. 289, approved July 4, 1974; Public Law 93-374 [SJ. Res. 229], 88 Stat. 
445, approved August 14, 1974; Public Law 93-425 [SJ. Res. 244], 88 Stat. 1166, 
approved September 30, 1974; Public Law 9^-450 [SJ. Res. 251], 88 Stat. 
1368, approved October 18, 1974; Public Law 93-646 [H.R. 15977], 88 Stat. 
2333, approved January 4, 1975; and by Public Law 95-143 [H.R 6415], 91 
Stat. 1210, approved October 26, 1977 

AN ACT To provide for increasing the lending authority of the Export-Import 
Bank of Washington, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of Ainerica in Congress asserribled^ That this Act may 
be cited as "the Export-Import Bank Act of 1945." 

Sec. 2. (a) (1)^ There is hereby created a corporation with the name 
Export -Import Bank of the United States - which shall be an agency 
of the United States of America. The objects and purposes of the Bank 
shall be to aid in financing and to facilitate exports and imports and the 
exchange of commodities between the United States or any of its terri- 
tories or insular possessions and any forei^ country or the agencies or 
nationals thereof. In connection with and in furtherance of its objects 
and purposes, the Bank is authorized and empowered to do a general 
banking business except that of circulation; to receive deposits; to 
purchase, discount, rediscount, sell, and negotiate, with or without its 
endorsement or guaranty, and to guarantee notes, drafts, checks, bills 
of exchange, acceptances, including bankers' acceptances, cable trans- 
fers, and other evidences of indebtedness; to guarantee, insure, co- 
insure, reinsure against political and credit risks of loss ; ' to purchase, 
sell, and guarantee securities but not to purchase with its funds any 
stock in any other corporation except that it may acquire any such 
stock, through the enforcement of any lien or pledge or otherwise to 
satisfy a previously contracted indebtedness to it; to accept bills and 
drafts drawn upon it; to issue letters of credit; to purchase and sell 
coin, bullion, and exchange; to borrow and to lend money; to perform 

^ 12 r.S.C. 635. Subsection (a>(l> amended hv Act of December 2S. 194r) (59 Stat. 6fiR>. 
and by Act of June 9. 1947 (61 Stat. 130). Paragraph (2) was added by PnbUc Law 92-126. 
85 Stat. 346. approved Aufrust 17. 1971. 

'The name of the Rank. "Export-Import Bank of Washlnpton". was changed to "Export- 
Import Bank of the United States" by Public Law 90-267, 82 Stat. 47. 

•Added by Sec. 2 of Public Law 93-646 (88 Stat. 2333). 

(181) 



182 

any act herein authorized in participation with any other person, in- 
cluding any individual, partnership, corporation, or association; to 
adopt, alter, and use a corporate seal, which shall be judicially noticed ; 
to sue and to be sued, to complain and to defend in any court of com- 
petent jurisdiction ; to represent itself or to contract for representation 
in all legal and arbitral proceedings outside the United States ; ^ and 
the enumeration of the foregoing powers shall not be deemed to ex- 
clude other powers necessary to the achievement of the objects and 
purposes of the Bank. The Bank shall be entitled to the use of the 
United States mails in the same manner and upon the same conditions 
as the executive departments of the Government. The Bank is au- 
thorized to publish or arrange for the publication of any documents, 
reports, contracts, or other material necessary in connection with or 
in furtherance of its objects and purposes without regard to the 
provisions of section 501 of title 44, United States Code, whenever 
the Bank determines that publication in accordance with the provisions 
of such section would not be practicable.^ The Bank is hereby author- 
ized to use all of its assets and all moneys \N^hich have been or may 
hereafter be allocated to or borrowed by it in the exercise of its func- 
tions. Net earnings of the Bank after reasonable provision for possible 
losses shall be used for payment of dividends on capital stock. Any 
such dividends shall be deposited into the Treasury as miscellaneous 
receipts. 

(2)* The receipts and disbursements of the Bank in the discharge 
of its functions shall not be included in the totals of the budget of 
the United States Government and shall be exempt from any annual 
expenditure and net lending (budget outlays) limitations imposed 
on the budget of the United States Government. In accordance with 
the provisions of the Government Corporation Control Act, the Presi- 
dent shall transmit annually to the Congress a budget for program 
activities and for administrative expenses of the Bank, which budget 
shall also include the estimated annual net borrowing by the Bank 
from the United States Treasury. The President shall report annually 
to the Congress the amount of net lending of the Bank, including 
any net lending created by the net borrowing from the United States 
Treasury, which would be included in the totals of the budget of 
the United States Government if the Bank's activities were not 
excluded from those totals as a result of this section. 

(b) (1) ^ (A) It is the policy of the United States to foster expansion 
of exports of goods and related services, thereby contributing to the 
promotion and maintenance of high levels of employment and real 
income and to the increased development of the productive resources of 
the United States. To meet this objective, the Export-Import Bank is 
directed, in the exercise of its functions, to provide guarantees, insur- 
ance, and extensions of credit at rates and on terms and other conditions 
which are competitive with the Government-supported rates and terms 
and other conditions available for the financing of exports from the 
principal countries whose exporters compete with United States 

*Parap:raph (2) was added by Public Law 92-126. 85 Stat. 346, approved Auffust 17, 
1971. Section 13 of Public Law 93-646 (88 Stat. 2333 at 2337) provided that "Effective 
at the close of September 30, 1976, section 2(a)(2) of the Export-Import Bank Act of 
1945 Is repealed." 

6 As amended and restated by Public Law 92-126 (85 Stat. 345) and by Sec. 3 of Public 
Law 93-646 (88 Stat. 2333). 



183 

exporters. The Bank shall, in cooperation with the export financing 
instrumentalities of other governments, seek to minimize competition 
in government-supported export financing and shall, in cooperation 
with other appropriate Ignited States (lovernment agencies, seek to 
reach international agreements to reduce government suh.^idized export 
financing.^ The Hank shall, on a semiannual basis, re])or( to tlie ai)pro- 
priate committees of Congress its actions in couiplying with these 
directives. In this report the Bank shall include a survey of all other 
major export-financing facilities available from other governments 
and government-related agencies through which foreign exporters 
compete w^th United States exporters and indicate in specific terms the 
ways in which the Bank's rates, terms, and other conditions compare 
with those offered from such other governments directly or indirectly. 
Further, the Bank shall at the same time survey a representative num- 
ber of United States exporters and United States commercial lending 
institutions which provide export credit to determine their experience 
in meeting financial competition from other countries whose exporters 
compete with United States exporters. The results of this survey shall 
be included as part of the semiannual report required by this subpara- 
graph. The Bank shall also include in the semiannual report a descrip- 
tion of each loan by the Bank involving the export of any product or 
service related to the production, refining, or transportation of any 
type of energy or the development of any energy resource with a state- 
ment assessing the impact, if any, on the availability of such products, 
services, or energy supplies thus developed for use wuthin the United 
States. 

(B) It is further the policy of the United States that loans made 
by the Bank shall bear interest at rates determined by the Board of 
Directors of the Bank, taking into consideration the average cost of 
money to the Bank as well as the Bank's mandate to support United 
States exports at rates and on terms and conditions which are compet- 
itive with exports of other countries; that the Bank in the exercise 
of its functions should supplement and encourage, and not compete 
with, private capital ; that the Bank shall accord equal opportunity 
to export agents and managers, independent export firms, and small 
commercial banks in the formulation and implementation of its pro- 
grams; that the Bank shall give due recognition to the policy stated 
in section 2(a) of the Small Business Act that "the Government should 
aid, counsel, assist, and protect, insofar as is possible, the interests 
of small business concerns in order to preserve free competitive enter- 
prise" and that in .furtherance of his policy the Board of Directors 
shall designate an officer of the Bank who shall be responsible to the 
President of the Bank for all matters concerning or affecting small 
business concerns and who, among other duties, shall be responsible 
for advising small businessmen of the opportunities for small busi- 
ness concerns in the functions of the Bank and for maintaining liaison 
with the Small Business Administration and other departments and 
agencies in matters affecting small business concerns; that loans, so 
far as possible consistent with the carrying out of the purposes of sub- 
section (a) of this section, shall generally be for specific purposes, and, 

•The words to this point bocinnlnp with "and shall, in oooporation with • • ♦ •• won- 
added by Sec. 1 of Public Law <>5-143 (91 Stat. 1210). 



184 

in the judgment of the Board of Directors, offer reasonable assurance 
of repayment; and that in authorizing any loan or guarantee, the 
Board of Directors shall take into account any serious adverse effect 
o,f such loan or guarantee on the competitive position of United States 
industry, the availability of materials which are in short supply in 
the United States, and employment in the United States, and shall also 
take into account, in consultation with the Secretary of State, the 
observance of and respect for human rights in tlie country to receive 
the exports supported by a loan or financial guarantee and the effect 
such exports may have on human rights in such country.^ 

(2) ^ The Bank in the exercise of its functions shall not guarantee, 
insure, or extend credit, or participate in any extension of credit — 

(A) in connection with the purchase or lease of any product 
by a Communist country (as defined in section 620(f) of the For- 
eign Assistance Act of 1961), or agency or national thereof, or 

(B) in connection with, the purchase or lease of any product 
by any other foreign country, or agency, or national thereof, if 
the product to be purchased or leased by such other country, 
agency, or national is, to the knowledge of the Bank, principally 
for use in, or sale or lease to, a Communist country (as so defined) , 

unless the President determines that guarantees, insurance, or exten- 
sions of credit in connection therewith to such Communist or sucli 
other country or agency or national thereof would be in the national 
interest. The President shall make a separate determination with 
respect to each transaction in which the Bank would extend a loan to 
such Communist or such other country, or agency, or national thereof 
an amount of $50,000,000 or more. Any determination required under 
the first sentence of this paragraph shall be reported to the Congress 
not later than the earlier of thirty days following the date of such 
determination, or the date on which the Bank takes final action on a 
transaction which is tlie first transaction involving such country or 
agency or national after the date of enactment of the Export-Import 
Bank Amendments of 1974, unless a determination with respect to 
such country or agency or national has been made and reported prior 
to such date of enactment. Any determination required to be made 
under the second sentence of this paragraph shall be reported to the 
Congress not later than the earlier of thirty days following the date 
of such determination or the date on w^hich the Bank takes final action 
on the transaction involved. 

(3) ® No loan or financial guarantee or combination thereof (i) in 
an amount which equals or exceeds $60,000,000, (ii) in an amount 
which equals or exceeds $25,000,000 for the export of goods or services 
involving research, exploration, or production of fossil fuel energy 
resources in the Union of Soviets Socialist Republics, or (iii) for the 
export of technology, fuel, equipment, materials, or goods or services to 



' The words to this point beginning with ", and shall also take into account, * * * " 
were adf^ed bv Sec. 2 of Ptiblic Law 05-143 (91 Stat. 1210). 

8 As amended and restated bv Public Law 90-267 (82 Stat. 48) and by Sec. 4 of Public 
Law 93-646 (88 Stat. 2333 at 2334). 

» Section 5 of Public Law 93-646 (88 Stat. 2333 at 2335) inserted paragraph (3) and 
redesignated paragraphs (3), (4), and (5) of the existing law as paragraphs (4), (5), 
and (6), respectively (these paragraphs were again redesignated as paragraphs (5). (6) 
and (7) by Public Law 95-143). Paragraph 3 was amended and restated bv Sec. 3(a) of 
Public Law 95-143 (91 Stat. 1210). 



185 

be used in the construction, alteration, operation, or maintenance of 
nuclear power, enrichment, reprocessin^r, research, or heavy water 
production facilities, shall be finally approved by the Board of Direc- 
tors of the Bank, unless in each case the Bank has submitted to the Con- 
gress with respect to such loan, financial <rnarantee, or combination 
thereof, a detaiknl statement descrihin<!: and exphiinin^ the transaction, 
at least 25 days of continuous session of the Congress prior to the 
date of final approval. For the purpose of the preceding sentence, con- 
tinuity of a session of the Congress shall be considered as broken only 
by an adjournment of the Congress sine die, and the days on which 
either House is not in session because of an adjournment of more 
than 3 days to a day certain shall be excluded in the computation of the 
25 day period referred to in such sentence. Such statement shall 
contain — 

(A^ a brief description of the purposes of the transaction, the 
identity of the party or parties requesting the loan or financial 
guarantee, the nature of the goods or services to be exported, 
and the use for which the goods or services are to be exported ; 
and 

(B) a full explanation of the reasons for Bank financing of the 
transaction, the amount of the loan to be provided by the Bank, the 
approximate rate and repayment terms at Avhich such loan will 
be made available and the approximate amount of the financial 
guarantee. 
(4)10 jj^g Secretary of State shall report to the appropriate com- 
mittees of Congress and to the Board of Directors of the Export- 
Import Bank if he determines that any country that has agreed to 
International Atomic Energy- Agency nuclear safeguards materially 
violates, abrogates, or terminates, after the date of enactment of this 
paragraph, such safeguards or that any country that has entered into 
an agreement for cooperation concerning the civil use of nuclear 
energy with the United States materially violates, abrogates, or ter- 
minates, after the date of enactment of this paragraph, any guarantee 
or other undertaking to the Ignited States made in such agreement or 
that any country tliat is not a nuclear- weapons state (as defined in 
article IX (3) of the Treaty on the Xon-Proliferation of Xuclear 
Weapons) detonates, after the date of enactment of this paragraph, 
a nuclear explosive device. The Secretary shall specify which country 
or countries he has determined to have so acted, and the Board shall 
not give approval to guarantee, insure, or extend credit, or participate 
in the extension of credit in support of United States exports to such 
country unless the President determines that it is in the national 
interest for the Bank to guarantee, insure, or extend credit, or par- 
ticipate in the extension of credit in support of Ignited States exports 
to such country and such determination has been reported to the 
Congress not less than twenty-five day of continuous session of the 
Congress prior to the date of such approval. For the purpose of the 
preceding sentence, continuity of a session of the Congress shall be 
considered as broken only by an adjournment of the Congress sine die. 
and the days on which either House is not in session because of an 



I 



" Section 3(b) of Public Law f>5-14s3 (91 Stat. 1210) added parajrraph (4) and recleslj 
nated paragraphs (4) through (6) as paragraphs (5) through (7). respectively. 



20-594 O - 78 - 13 



186 

adjournment of more than three days to a day certain shall be excluded 
in the computation of the twenty-five day period referred to in such 
sentence. 

(5)^^ The Bank shall not guarantee, insure, or extend credit, or par- 
ticipate in the extension of credit in connection with (A) the purchase 
of any product, technical data, or other information by a national or 
agency of any nation which engages in armed conflict declared or 
otherwise, with the Armed Forces of the United States, (B) the pur- 
chase by any nation (or national or agency thereof) of any product, 
technical data, or other information which is to be used principally by 
or in any such nation described in clause (A). The Bank shall not 
guarantee, insure, or extend credit, or participate in the extension of 
credit in connection with the purchase of any product, technical data, 
or other information by a national or agency of any nation if the Presi- 
dent determines that any such transaction would be contrary to the 
national interest, or (C) the purchase of any liquid metal fast breeder 
nuclear reactor or any nuclear fuel reprocessing facility.^^ 

(6)® The Bank shall not guarantee, insure, or extend credit, or par- 
ticipate in an extension of credit in connection with any credit sale 
of defense articles and defense services to any country designated under 
section 4916 of the Internal Revenue Code of 1954 as an economically 
less developed country for purposes of the tax imposed by section 4911 
of that Code. The prohibitions set forth in this paragraph shall not 
apply with respect to any transaction the consummation of w^hich the 
President determines would be in the national interest and reports such 
determination (within thirty days after making the same) to the 
Senate and House of Representatives. In making any such determina- 
tion the President shall take into account, among other considerations, 
the national interest in avoiding arm races among countries not di- 
rectly menaced by the Soviet Union or by Communist China ; in avoid- 
ing arming military dictators who are denying social progress to their 
own peoples; and in avoiding expenditures by developing countries 
of scarce foreign exchange needed for peaceful economic progress. 

(7)® In no event shall the Bank have outstanding at any time in 
excess of 7I/2 per centum of the limitation imposed by section 7 of this 
Act for such guarantees, insurance, credits or participation in credits 
with respect to exports of defense articles and services to countries 
which, in the judgment of the Board of Directors of the Bank, are less 
developed. 

(c) (1)^^ The Bank is authorized and empowered to charge against 
the limitations imposed by section 7 of this Act, not less than 25 per 
centum of the related contractual liability which the Bank incurs for 
guarantees, insurance, coinsurance, and reinsurance against political 
and credit risks of loss. The aggregate amount of guarantees, in- 
surance, coinsurance, and reinsurance which may be charged on 
this fractional basis pursuant to this section shall not exceed 
$20,000,000,000^* outstanding at any one time. Fees and premiums 



11 Section 2(b)(3) (subsequently redesignated as Sec. 2(b)(5)) was amended and re- 
stated bv rublic Law 92-126. 85 Stat. '346, approved August 17, 1971. Previously added by 
Public Law 90-267 (82 Stat. 48). 

"Clause (C) was added by Sec. 3(c) of Public Law 95-143 (91 Stat. 1211). 

i'<As amended and restated bv Sec. 6 of Public Law 93-646 (88 Stat. 2333 at 2335). 

1* Sec. 1(a) of Public Law 88-101 (77 Stat. 128). changed the sum to ".H;2. 000,000.000" : 
Sec. 1(c) of Public Law 90-267 (82 Stat. 49) increased the sum to "$3 500,000,000": 
Sec. 1(b)(2) of Public Law 92-126 increased the sum to "$10,000,000,000"; and Sec. 6 
of Public Law 93-646 (88 Stat. 2333 at 2336) increased the sum to $20,000,000. 



187 

shall be char<refl in connoction with such contracts commensurate, in 
the judj^nient of the Bank, with the risks covered. 

(2) Tlie Bank may issue such guarantees, insurance, coinsurance, 
and reinsurance to or with exporters, insurance companies, financial 
institutions, or others, or groups thereof, and where appropriate may 
employ any of the same to act as its agent in the issuance and servicing 
of such guarantees, insurance, coinsurance, and reinsurance, and the 
adjustment of claims arising thereunder. 

Sec. 3.'^ (a) The Export-Import Bank of the United States shall 
constitute an independent agency of tlie Ignited States and neither the 
Bank nor any of its functions, powers, or duties shall be transferred 
to or consolidated with any other department, agency, or corporation 
of the Government unless the Congress shall otherwise by law provide. 

(b) There shall be a President of the P^xport-Import Bank of the 
United States, who shall be appointed by the President of the United 
States by and with the advice and consent of the Senate, who shall 
receive a salary at the rate of $40,000 ^® per annum, and who shall 
serve as chief executive officer of the Bank. There shall be a First 
Vice President of the Bank, who shall be appointed by the President 
of the United States by and with the advice and consent of the Sen- 
ate, who shall receive a salary at the rate of $38,000 ^^ per annum, who 
shall serve as President of the Bank during the absence or disability 
of or in the event of a vacancy in the office of President of the Bank, 
and who shall at other times perform such functions as the President 
of the Bank may from time to time prescribe. 

(c) There shall be a Board of Directors of the Bank consisting of the 
President of the Export-Import Bank of the United States who shall 
serve as Chairman, the First Vice President who shall serve as Vice 
Chairman, and three additional persons appointed by the President 
of the United States by and with the advice and consent of the Senate. 
Of the five members of the Board, not more than three shall be mem- 
bers of any one political party. Each director, other than the Presi- 
dent of the Export-Import Bank and the Vice President of the Export- 
Import Bank, shall receive a salary at the rate of $38,000 ^^ per 
annum. Before entering upon his duties, each of the directors shall 
take an oath faithfully to discharge the duties of his office. Terms 
of the directors shall be at the pleasure of the President of the United 
States, and the directors, in addition to their duties as members of the 
Board, shall perform such additional duties and may hold such other 
offices in the administration of the Bank as the President of the 
Bank may from time to time prescribe. A majority of the Board of 
Directors shall constitute a quorum. The Board of Directors shall 
adopt, and may from time to time amend, such bylaws as are neces- 
sary for the proper management and functioning of the Bank, and 
shall, in such bylaws, designate the vice presidents and other officers 
of the Bank and prescribe their duties. 

^^ 12 r.S.C. 63oa. as amended bv Act of August 9. 1954 (68 Stat. 677) and by Public Iwiw 
90-267. 82 Stat. 49. March 13. 1968. 

1" Present salary provided bv Public Law 90-206. 81 Stat. 638. Dec. 16. 1967. 5 U.S.C. 
.')314(42) : IT. Doc! 91-51 (1969). 

1' Present salary provided bv Public Law 90-206. 81 Stat. 638. Dec. 16. 1967. 5 r.S.C. 
5315(49) : IL Doc". 91-51 (1969). 

i"* Present salarv provided bv Public Law 90-206. 81 Stat. 638. Dec. 16. 1967. 5 I'.S.C. 
5315 (,56) ; H. Doc. 91-51 (1969). 



188 

(d) There shall be an Advisory Committee of nine members, ap- 
pointed by the Board of Directors on the recommendation of the 
President of the Bank, who shall be broadly representative of pro- 
duction, commerce, finance, agriculture, and labor. The Advisory 
Committee shall meet one or more times per year, on the call of 
the President of the Bank, to advise with the Bank on its program. 
Members, not otherwise in the regular full-time employ of the United 
States, may be compensated at rates not exceeding the per diem equiva- 
lent of the rate for grade 18 of the General Schedule (5 U.S.C. 5332) 
for each day spent in travel or attendance at meetings of the Commit- 
tee, and while so serving away from their homes or regular places of 
business, they may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by section 5703 of title 5, United 
States Code, for individuals in the Government service employed 
intermittently. 

(e) No director, officer, attorney, agent, or employee of the bank 
shall in any manner, directly or indirectly, participate in the delibera- 
tion upon or the determination of any question affecting his personal 
interests, or the interests of any corporation, partnership, or associa- 
tion in which he is directly or indirectly personally interested. 

Sec. 4.^^ The Export-Import Bank of the United States shall have a 
capital stock of $1,000,000,000 subscribed by the United States. Pay- 
ments for $1,000,000 of such capital stock shall be made by the sur- 
render to the Bank for cancellation of the common stock heretofore 
issued by the Bank and purchased by the United States. Payment 
for $174,000,000 of such capital stock shall be made by the surrender 
to the Bank for cancellation of the preferred stock heretofore issued 
by the Bank and purchased by the Reconstruction Finance Corpora- 
tion. Payment for the $825,000,000 balance of such capital stock 
shall be subject to call at any time in whole or in part by the Board 
of Directors of the Bank. For the purpose of making payments of 
such balance, the Secretary of the Treasury is authorized to use as 
a public-debt transaction the proceeds of any securities hereafter 
issued under the Second Liberty Bond Act, as amended, and the pur- 
poses for which securities may be issued under that Act are extended 
to include such purpose. Payment under this section of the sub- 
scription of the United States to the Bank and repayments thereof 
shall be treated as public-debt transactions of the United States. 
Certificates evidencing stock ownership of the United States shall be 
issued by the Bank to the President of the United States, or to such 
other person or persons as he may designate from time to time to 
the extent of the common and preferred stock surrendered and other 
payments made for the capital stock of the Bank under this section. 

Sec. 5.2° (a) The Secretary of the Treasury shall pay to the Recon- 
struction Finance Corporation the par value of the preferred stock 
upon its surrender to the Bank for cancellation. For the purpose of 
making such payments to the Reconstruction Finance Corporation the 
Secretary of the Treasury is authorized to use as a public- debt trans- 
action the proceeds of any securities hereafter issued under the Second 
Liberty Bond Act, as amended, and the purposes for which securities 

"12 U.S.C. 635b. Public Law 90-267 (82 Stat. 47), changed the name of the bank to 
Export-Import Bank of the United States. 
20 12 U.S.C. 635c. 



I 



189 

may be issued under tliat Act are extended to include such purpose. 
Payment under tliis subsection to the Keconstruction Finance Corpora- 
tion shall be treated as public-debt transactions of tlie United vStates. 
(b) Any dividends on the preferred stock accumulated and unpaid 
to the date of its surrender for cancellations shall be paid to the Recon- 
struction Finance Corjioration by the Bank. 

Sec, 6.^^ The Export-Import Bank of the T'nited States is authorized 
to issue from time to time for purchase by the Secretary of the Treas- 
ury its notes, debentures, bonds, or other obligations; but the aggre- 
gate amount of such obligations outstanding at any one time shall 
not exceed $6,000,000,000. Such obligations shall be redeemable at the 
option of the Bank before maturity in such manner as may be stipu- 
lated in such obligations and shall have such maturity as may be 
determined by the Board of Directors of the Bank with the approval 
of the Secretary of the Treasury. Each such Bank obligation issued 
to the Treasury after the enactment of the Export-Import Bank 
Amendments of 1974 shall bear interest at a rate not less than the 
current average yield on outstanding marketable obligations of the 
United States of comparable maturity during the month preceding 
the issuance of the obligation of the Bank as determined by the Secre- 
tary of the Treasury. The Secretary of the Treasury is hereby 
authorized and directed to purchase any obligations of the Bank 
issued hereunder and for such purpose the Secretary of the Treasury 
is authorized to use as a public-debt transaction the proceeds of any 
securities hereafter issued under the Second Liberty Bond Act, as 
amended, and the purposes for which securities may be issued under 
that Act are extended to include such purpose. Payment under this 
section of the purchase price of such obligations of the Bank and 
repayments thereof by the Bank shall be treated as public-debt trans- 
actions of the United States. 

Sec. 7. (a)" The Expoi-t -Import Bank of the United States shall not 
have outstanding at any one time loans, guaranties, and insurance in an 
aggregate amount in excess of $25,000,000,000. 

(b) After the date of enactment of the Export-Import Bank 
Amendments of 1974, the Bank shall not approve any loans or financial 
guarantees, or combination thereof, in connection with exports to the 
Union of Soviet Socialist Republics in an aggregate amount in excess 
of $300,000,000. Xo such loan or financial guarantee, or combination 
thereof, shall be for the purchase, lease, or procurement of any ]:)roduct 
or service for production (including processing and distribution) of 
fossil fuel energy resources. Not more than $40,000,000 of such aggre- 
gate amount shall be for the purchase, lease, or procurement of any 
product or service which involves research or exploration of fossil fuel 

21 12 I'.S.C. 63Hd. The second and third spntpnoes wore added bv Public Law R0-R9 (01 
Stat. l.?l). Public Law R2-ir)8 ffi5 Stat. 637). further amended the section; Public Law 
S3-fi70 ffiS Stat. 67S). substituted a new debt limit of $4,000,000; Public Law S5-425 (72 
Ntat. 133). raised that limit to $6,000,000. The third sentence was revised bv Sec. 7 of 
Public Law 03-646 (S8 Stat. 2333 at 2336) 

"12 r.S.C. 63r)e Public Utw S2-15S (fi.") Stat. 367). raised the limit on the apcrepato 
amount to 4i(. times the authorized capital stock of the bank. The words "and insurance" 
were added by Public Law S3-30 (67 Stat. 28). Public Law S3-r)70 (6S Stat. 578). raised 
the ajrpregate amount to $5,000,000,000; Public Law 8.'>-424 (72 Stat. 133) increased thp 
amount to S7. 000.000. 000 ; Public Law RS-101 (77 Stat. 12R). increa.sed the amount to 
$0,000,000,000; Public Law 00-267 (82 Stat. 49). Increased the amount to $13..->00.000.- 
000; and Public Law 02-126 (S.'S Stat. 345). Increased the amount to $20,000,000,000; 
and Public Law 93-646 (88 Stat. 2333) Increased the amount to $25,000,000,000. Section 
7(b) was added by Sec. 8 of Public Law 93-646. 



190 

energy resources. The President may establish a limitation in 
excess of $300,000,000 if he determines that such higher limitation is 
in the national interest and if he reports such determination to the 
Congress together with the reasons therefor, including the amount of 
such proposed increase which would be available for the export of 
products and services for research, exploration, and production 
(including processing and distribution) of fossil fuel energy resources 
in the Union of Soviet Socialist Republics, and if, after the receipt 
of such report together with the reasons, the Congress adopts a con- 
current resolution approving such determination. 

Sec. 8.2^ The Export-Import Bank of the United States shall con- 
tinue to exercise its functions in connection with and in furtherance of 
its objects and purposes until the close of business on September 30, 
1978,^* but the provisions of this section shall not be construed as pre- 
venting the Bank from acquiring obligations prior to such date which 
mature subsequent to such date or from assuming prior to such date 
liability as guarantor, endorser, or acceptor of obligations which ma- 
ture subsequent to such date, or from issuing either prior or subsequent 
to such date, for purchase by the Secretary of the Treasury or any 
other purchasers, its notes, debentures, bonds, or other obligations 
which mature subsequent to such date or from continuing as a corpo- 
rate agency of the United States and exercising any of its functions 
subsequent to such date for purposes of orderly liquidation, including 
the administration of its assets and the collection of any obligations 
held by the Bank. 

Sec. 9. (a) 2^ The Export-Import Bank of the United States shall 
transmit to the Congress annually a complete and detailed report of its 
operations. The report shall be as of the close of business on the last 
day of each fiscal year. 

(b)^^ The report shall contain a description of actions taken by the 
Bank in pursuance of the policy of aiding, counseling, assisting, and 
protecting, insofar as is possible, the interests of small business 
concerns. 

Sec. 10. Section 9 of the Act of January 31, 1935 (49 Stat. 4, eh. 
2), as amended, is repealed. 

Sec. 11.2^ Notwithstanding the provisions of section 955 of title 18, 
United States Code, any person, including any individual, partner- 
ship, corporation, or association, may act for or participate with the 
Export-Import Bank of the United States in any operation or trans- 
action, or may acquire any obligation issued in connection with any 
operation or transaction, engaged in by the Bank. 

23 12 U.S.C. 635f. As amended and restated by the Act of June 9, 1947 (61 Stat. 130) ; 
the date was revised to "June 30, 1958" by Public Law 82-158 (65 Stat. 367) : the date 
changed to "June 30, 1968" with Public Law 88-101 (77 Stat. 128), and to "June 30. 
1973" with Public Law 90-267 (82 Stat. 49). Public Law 92-126 (85 Stat. 345) changed 
the date to "June 30, 1974" and added the words "or any other purchasers." The date 
was chanpred succesively to "July 30," "September 30," "October 15. 1974," "November 15. 
1974" and "June 30 1978" by Public Law 93-331 (88 Stat. 289), Public Law 93-374 (88 
Stat. 445), Public Law 93-425 (88 Stat. 1166), Public Law 93-450 (88 Stat. 1368), and 
Public Law 93-646 (88 Stat. 2333). respectively. 

2* Section 4 of Public Law 95-143 (91 Stat. 1211) changed the date from June 30, 1978, 
to September 30. 1978. 

25 12 U.S.C. 635g. Section 10 of Public Law 93'-646 (88 Stat. 2333 at 2336) changed the 
reporting requirements from semiannual to annual to be completed as of the end of each 
fiscal year instead of June 30 and December 31 of each year. 

2« Subsection (b) was added by Sec. 10 of Public Law 93-646 (88 Stat. 2338 at 2337). 

27 12 U.S.C. 635h. As amended and restated by Public Law 83-779 (68 Stat. 112). Public 
Law 90-267 changed the name of the banlc to "Export-Import Bank of the United States." 



191 

Sec. 12.'® The Export-Import Bank of the T'liitcd States created 
hereby sliall by virtue of this Act succeed to all of the rights and as- 
sume all of the liabilities of the P^xport-Import Bank of Wash- 
ington, a District of Columbia corporation, and any outstanding 
capital stock of the District of Columoia corporation shall be deemed 
to have been issued by and shall be capital stock of the corporation 
created by this Act and all of the personnel, property, records, funds 
(including all unexpended balances of appropriations, allocations, or 
other funds now available), assets, contracts, obligations, and liabili- 
ties of the District of Columbia corporation are hereby transferred to, 
accepted, and assumed by the corporation created by this Act without 
the necessity of any act or acts on the part of the corporation created 
by this Act or of the District of Columbia corporation, their officers, 
employees, or agents or of any other department or agency of the 
United States to carry out the purposes hereof and it shall be unneces- 
sary to take any further action to effect the dissolution or liquidation of 
Export-Import Bank of Washington, a District of Columbia 
corporation. The members of the Board of Directors of the District 
of Columbia corporation, appointed pursuant to the provisions of the 
Export-Import Bank Act of 1945, shall, during the unexpired portion 
of the terms for which they were appointed, continue in office as mem- 
bers of the Board of Directors of the corporation created by this Act. 



» 12 U.S.C. 6351. Added by sec. 4 of Public Law 80-89 (61 Stat. 131). 



2. Export Expansion 

a. Public Law 90-390 [H.R. 16162], 82 Stat. 296, 
approved July 7, 1968^ 

AN ACT To enable the Export-Import Bank of the United States to approve 
extension of certain loans, guarantees, and insurance in connection with 
exports from the United States in order to improve the balance of payments 
and foster the long-term commercial interests of the United States. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, 

Section 1. (a) It is the policy of the Congress that the Export- 
Import Bank of the United States should facilitate through loans, 
guarantees, and insurance (including coinsurance and reinsurance) 
those export transactions which, in the judgment of the Board of 
Directors of the Bank, offer sufficient likelihood of repayment to 
justify the Bank's support in order to actively foster the foreign trade 
and long-term commercial interest of the United States. 

(b) The Bank shall specially designate loans, guarantees, and insur- 
ance on the books of the Bank made under authority of this Act. In 
connection with guarantees and insurance, not less than 25 per centum 
of the related contractual liability of the Bank shall be taken into 
account for the purpose of applying the limitation imposed by section 
7 of the Export-Import Bank Act of 1945, as amended ; but the full 
amount of the related contractural liability of such guarantees and 
insurance shall be taken into account for the purpose of applying the 
limitation in section 2(c) (1) of that Act, concerning the amount of 
guarantees and insurance the Bank may have outstanding at any one 
time thereunder. The aggregate amount of loans plus 25 per centum of 
the contractual liability of guarantees and insurance outstanding at 
any one time under this Act shall not exceed $500,000,000. 

(c) The Board of Directors of the Bank shall submit to the Congress 
for the calendar quarter ending September 30, 1968, and for each cal- 
endar quarter thereafter a report of all actions taken under authority 
of this Act during such quarter. 

Sec. 2. In the event of any losses, as determined by the Board of 
Directors of the Bank, incurred on loans, guarantees, and insurance 
extended under this Act, the first $100,000,000 of such losses shall be 
borne by the Bank ; the second $100,000,000 of such losses shall be borne 
by the Secretary of the Treasury ; and any losses in excess thereof shall 
be borne by the Bank. Reimbursement of the Bank by the Secretary 
of the Treasury of the amount of losses which are to be borne by the 
Secretary of the Treasury as aforesaid shall be from funds made avail- 
able pursuant to section 3 of this Act. All guarantees and insurance 
issued by the Bank shall be considered contingent obligations backed 
by the full faith and credit of the Government of the United States of 
America. 

» 12 U.S.C. 635J-635n. 

(192) 



193 

Sec. 3. There are hereby authorized to be appropriated to the Sec- 
retary of the Treasury without fiscal year limitation $100,000,000 to 
cover the amount of any losses which are to be borne by the Secre- 
tary of the Treasury as provided in section 2 hereof. 

Sec. 4. Nothing in this Act shall be construed as a limitation on the 
powers of the Bank under the Export-Import Bank Act of 1945, as 
amended; and except as to the standard of reasonable assurance of 
repayment required under section 2(b)(1) of that Act, all loans, 
guarantees, and insurance extended hereunder shall be subject to the 
provisions of said Export-Import Bank Act of 1945, as amended, and 
to the policies of the Bank with respect to terms of repayment, interest 
rates, fees, and premiums applicable to loans, guarantees, and insur- 
ance extended under that Act. 

Sec. 5. The Bank shall not extend loans, guarantees, or insurance 
under this Act in connection with the sale of defense articles or defense 
services. 



b. Executive Order 11420, July 31, 1968, 33 F.R. 10997, 3 CFR, 
1966-70 Comp., p. 739 

Establishing the Export Expansion Advisory Committee 

Whereas foreign trade is an essential and continuing element in sus- 
taining the growth, strength, and prosperity of our economy, con- 
tributes to the improvement of our balance of payments, and fosters 
the long-term commercial interest of the United States ; and 
Whereas, on March 20, 1968, I requested the Congress to empower 
the Export-Import Bank of the United States to use up to $500,- 
000,000 of its loan, guarantee, and insurance authority to finance a 
broadened program to sell American goods in foreign markets ; and 
Whereas the Congress has authorized the Bank to extend loans, guar- 
antees, and insurance which, in the judgment of the Board of Direc- 
tors of the Bank, offer sufficient likelihood of repayment to justify 
the Bank's support in order to actively foster the foreign trade and 
long-term commercial interest of the United States ; and 
Whereas it is desirable and appropriate that guidance concerning the 
commercial interests and the balance of payments objectives of the 
United States be provided to the Board of Directors of the Bank 
in the use of such loan, guarantee, and insurance authority allocated 
to finance export expansion, and I have stated that I would establish 
an Export Expansion Advisory Committee to provide such guidance 
to the Board of Directors of the Bank : 
Now, therefore, by virtue of the authority vested in me as President 
of the United States, it is ordered as follows : 
Section 1. Establishment of Advisory Committee, (a) There is 
hereby established the Export Expansion Advisory Committee (here- 
inafter referred to as "the Committee") . 

(b) The Committee shall be composed of the following members: 
the Secretary of Commerce, who shall be Chairman of the Committee, 
the Secretary of the Treasury, the Secretary of State, and the Presi- 
dent and Chairman of the Board of the Export-Import Bank of the 
United States. 

Sec. 2. Functions of the Committee. The Committee shall revicAv 
and make recommendations concerning applications and proposals 
for loans, guarantees, and insurance to be charged against allocations 
made to finance export expansion and shall provide guidance to the 
Board of Directors of the Bank concerning the use of such allocations 
with the view to fostering the foreign trade and long-term commer- 
cial interest of the United States. 

Sec. 3. Construction. Nothing in this order shall be construed to 
abrogate, modify, or restrict any function vested by law in, or assigned 
pursuant to law to, any Federal agency, or any officer thereof or to any 
Federal interagency council or committee. As used herein the term 
"any Federal agency" includes any executive department and any 
other executive agency. 

(194) 



3. Bretton Woods Agreements Act, as amended ^ 

Public Law 79-171 [H.R. 3314], 59 Stat. 512, approved July 31, 1945, as amended 
by Public Law 80-472 [S. 2202], 62 Stat. 137, approved April 3, 1948; Public 
Law 81-142 [H.R. 4332], 63 Stat. 298, approved June 29, 1949; Public Law 82- 
165 [H.R. 5113], 65 Stat. 373, approved October 10, 1951; Reorganization Plan 
\o. 7 of 1953, August 1, 1953, 18 F.R. 4541, 67 Stat. 639; Public Law 83-570 
[S. 3589], 68 Stat. 677, approved August 9, 1954; Public Law 86-48 [S. 1094], 
73 Stat. 80, approved June 17, 1959; Public Law 87-490 [H.R. 10162], 76 Stat. 105, 
approved June 19, 1962; Public Law 88-178 [H.R. 7405], 77 Stat. 334, approved 
November 13, 1963; Public Law 89-31 [H.R. 6497], 79 Stat. 119, approved June 2, 
1965; Public Law 89-126 [S. 1742], 79 Stat. 519, approved August 14, 1965; Pub- 
lic Law 91-599 [H.R. 18306], 84 Stat. 1657, approved December 30, 1970; 
Public Law 93-94 [S. 1887], 87 Stat. 314, approved August 15, 1973; Public Law 
94-564 [H.R. 13955], 90 Stat. 2660, approved October 19, 1976; and by Public 
Law 95-118 [H.R. 5262], 91 Stat. 1067, approved October 3, 1977 



XoTE. — This Act was amended by sections 1, 2, 3. and 4 of 
Public Law 94—564. However, sections 2. 8, and 4 of such Act do 
not become effective until entry into force of the amendments 
to the Articles of A<rreement of the International Monetary Fund 
approved in Resolution Numbered 31-4 of the Board of Gov- 
ernors of the Fund. Upon enactment of section 1 of Public Law 
94-564 (October 19. 1976), the Ignited States Governor of the 
Fund was authorized to accept the amendments to the Articles 
of Agreement. Formal acceptance by the L'nited States occurred 
on November l.i. 1976. However, at the publication date of this 
volume, these amendments had not yet entered into force. The 
changes in the Bretton Woods Agreements Act, as amended, 
which will be effective upon such entry into force are included as 
footnotes to the appropriate sections. In addition, the complete 
text of Public Law 94—564 may be found on page 212. 



AN ACT To provide for the participation of the United States in the Inter- 
national Monetary Fund and the International Bank for Reconstruction and 
Development. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SHORT TITLE 

Section 1. This Act may he cited as the "Bretton AVoods Agree- 
ments Act.'- 

ACCEPTANCE OF ME3IBERSIIIP 

Sec. 2. The President is hereby authorized to accept membership 
for the United States in the International Monetarv Fund (herein- 



1 22 use 286-286k-l. 

(195) 



196 

after referred to as the "Fund"), and in the International Bank for 
Reconstruction and Development (hereinafter referred to as the 
"Bank"), provided for by the Articles of Agreement of the Fund and 
the Articles of Agreement of the Bank as set forth in the Final Act 
of the United Nations Monetary and Financial Conference dated 
July 22, 1944, and deposited in the archives of the Department of 
State. 

APPOINTMENT OF GOVERNORS, EXECUTIVE DIRECTORS, AND ALTERNATES 

Sec. 3.2 (a) The President, by and with the advice and consent 
of the Senate, shall appoint a governor of the Fund who shall also 
serve as governor of the Bank, and an executive director of the Fund 
and an executive director of the Bank. The executive directors so 
appointed shall also serve as provisional executive directors of the 
Fund and the Bank for the purposes of the respective Articles of 
Agreement. The term of office for the governor of the Fund and of 
the Bank shall be five years. The term of office for the executive 
directors shall be two years, but the executive directors shall remain 
in office until their successors have been appointed. 

(b) The President, by and with the advice and consent of the 
Senate, shall appoint an alternate for the governor of the Fund and 
an alternate for the governor of the Bank.^ The President, by and 
with the advice and consent of the Senate, shall appoint an alternate 
for each of the executive directors. The alternate for each execu- 
tive director shall be appointed from among individuals recom- 
mended to the President by the executive director. The terms of 
office for alternates for the governor and the executive directors 
shall be the same as the terms specified in subsection (a) for the 
governor and executive directors. 

(c) * No person shall be entitled to receive any salary or other com- 
pensation from the United States for services as a governor, executive 
director, or alternate. 



2 See sec. 3 of the International Finance Corporation Act, p. 218 of the text. See sec. 3 
of the International Development Association Act. p. 231 of the text. 

3 The words "and an alternate for the governor of the Bank" were substituted by Public 
Law 93-94 (87 Stat. 314), for the words "who shall also serve as alternate for the gov- 
ernor of the bank". , , , . . 

* Sec. 2 of Public Law 94-o64 provides that upon entry into force of the amendments to 
the Articles of Agreement to the IMF. subsection (c) will be amended to read as follows : 

"(c) Should the provisions of Schedule D of the Articles of Agreement of the Fund apply, 
the Governor of the Fund shall also serve as councillor, shall designate an alternate for 
the councillor, and may designate associates." 

In addition, Sec. 2 also provides that a new subsection (d) shall be added which reads 
as follows : , ^. ^ ^.t 

"(d) No nerson shall be entitled to receive any salary or other compensation from the 
United States for services as a Governor, executive director, councillor, alternate, or 
associate." 



197 

NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND 
FINANCIAL PROBLEMS 



Section 1(a) and 3(a) of Reorganization Plan No. -4 of 1065, 
etiective Jul;v^ 27, 1065, 30 F.R. 0353, abolished the Council and 
functions, with the President acquiring the duties. Subsequently 
P^xecutive Order 11260, as amended (on p. 860), re-established 
the National Advisory Council on International Monetary and 
Financial Policies under the executive branch. 

The text of the reporting requirement of Chapter 3 of Public 
Law 01-500 (84 Stat. 1658), approved December 30, 1070, is ob- 
sei'ved in practice by the executive office. It reads as follows : 

"§ 31. Annual report 

''The National Advisory Council on International Monetary 
and Financial Policies shall include in its annual report to the 
Congress (1) a statement with respect to each loan approved and 
outstanding, made by the International Bank for Reconstruction 
and Development, the International Development Association, 
the Inter- American Development Bank, and the Asian Develop- 
ment Bank, including an evaluation of new loans made by said 
organization and a progress report of the project covered by each 
loan, and a discussion of how each loan will benefit the people of 
the recipient country, and (2) a statement on steps taken jointly 
and individually by member countries of the Inter- American 
Development Bank to restrain their military expenditures, and to 
preserve and strengthen free and democratic institutions." 



I 



Sec. 4."^ (a) In order to coordinate the policies and operations of 
the representatives of the United States on the Fund and the Bank 
and of all agencies of the Government which make or participate in 
making foreign loans or which engage in foreign financial, exchange 
or monetary transactions, there is hereby established the National 
Advisory Council on International Monetary and Financial Problems 
(hereinafter referred to as the "Council") , consisting of the Secretary 
of the Treasury, as Chairman, the Secretary of State, the Secretary of 
Commerce, the Chairman of the Board of Governors of the Federal 
Reserve System,^ the President of the Export-Import Bank of Wash- 

^' Sep section 4 of the International Finance Corporation Act. p. 218 of text. Also con- 
sult p. 231 for section 4 of the International Development Association Act and p. 222 
for section 4 of the Inter-American Development Bank Act. 

For revisions of functions and status of the Council, see Reorganization Plan No. 4 of 
1965 (sec. 16. sec. 3(a) and sec. 3(b). as well as Executive Order 11269 on p. 216 of the 
text. 

Consult with Executive Order 11264 (Vol. I. p. 600). on the Board of the Foreipn 
Service and the Board of Examiners of the Foreign Service and Executive Order 11636 
(Vol. I. p. .591), on Employee-Management Relations In the Foreign Service of the United 
States. 

«The material following "* * • Federal Reserve System," read as follows in the 
original act : "and the Chairman of the Board of Trustees of the Export-Import Bank of 
Washington." Subsection 4(a) has been amended bv the following : 

(1) The Economic Corporation Act of 1948, approved Apr. 3, 1948 (62 Stat. 141). 
sec. 106 of which amended subsec. 4(a) so as to include the Administrator for Economic 
Cooperation "during such period as the Economic Cooperation Administration shall con- 
tinue to exist". 

(2) The Mutual Security Act of 1951. approved Oct. 10. 1951 (65 Stat. 378). sec. 
501(e)(2) of which amended subsec. 4(a), by substituting the Mutual Security Agency 

(Continued) 



198 

ington, and during such period as the Foreign Operations Adminis- 
tration shall continue to exist, the Director of the Foreign Operations 
Administration. 

(b) (1) The Council, after consultation with the representatives of 
the United States on the Fund and the Bank, shall recommend to the 
President general policy directives for the guidance of the representa- 
tives of the United States on the Fund and the Bank. 

(2) The Council shall advise and consult with the President and 
the representatives of the United States on the Fund and the Bank 
on ma] or problems arising in the administration of the Fund and the 
Bank. 

(3) The Council shall coordinate, by consultation or otherwise, so 
far as is practicable, the policies and operations of the representatives 
of the United States on the Fund and the Bank, the Export-Import 
Bank of Washington and all other agencies of the Government to the 
extent that they make or participate in the making of foreign loans 
or engage in foreign, financial, exchange or monetary transactions. 

(4) Whenever, under the Articles of Agreement of the Fund or the 
Articles of Agreement of the Bank, the approval, consent or agreement 
of the United States is required before an act may be done by the re- 
spective institutions, the decision as to whether such approval, consent, 
or agreement, shall be given or refused shall (to the extent such de- 
cision is not prohibited by section 5 of this Act) be made by the Coun- 
cil, under the general direction of the President. No governor, execu- 
tive director, or alternate representing the United States shall vote in 
favor of any waiver of condition under article V, section 4, or in favor 
of any declaration of the United States dollar as a scarce currency un- 
der article VIT, section 3, of the Articles of Agreement of the Fund, 
without prior approval of the Council. 

(5)^ The Council shall transmit to the President and to the Con- 
gress an annual report with respect to the participation of the United 
States in the Fund and Bank. 

(6)'' Each such report shall contain such data concerning the opera- 
tions and policies of the Fund and Bank, such recommendations 
concerning the Fund and Bank, and such other data and material as 
the Coimcil may deem appropriate. 

(7) The Council shall make such reports and recommendations to 
the President as he may from time to time request, or as the Council 

(Continued) 

nnd the Director for Mutual Security for the Economic Cooperation Administration and 
tlie Administrator for Economic Cooperation respectively ; 

(3) Reorganization Plan No. 5 of 1953, effective June 30, 1953 (67 Stat. 637), sec. 7 
of which abolished the function of the Chairman of the Board of of Directors of the Export- 
Import Banlt of Washington of being a member of the National Advisory Council : 

(4) Reorganization Plan No. 7 of 1953. effective Aug. 1, 1953 (67 Stat. 640), sec. 4 
of wliich provided that the Director of the Foreign Operations Administration should be 
a member of the National Advisorv Council : 

('5) Public Law 83-570, approved Aug. 9, 1954 (68 Stat. 677. 678). sec. 2 of which 
Inserted the part of the text ouoted above following "* * * the Federal Reserve System.". 

Executive Order 10610, 20 F.R. 3179, effective July 1, 1955, abolished the Foreign 
Operations Administration and the Office of Director of the Foreign Operations Adminis- 
tration, and the membership of the Director of the Foreign Operations Administration 
on tlie National Advisory Council thereby expired by operation of law effective on that 
date. 

■^As amended by sec. 1(1) of Public Law 89-126, approved August 14. 1965 (79 Stat. 
519; 22 U.S.C. 286b). See sec. 15(b) as added June 29, 1949 by sec. 2, 63 Stat. 298. 
22 TT.S.C. 2,S6k-l. which reads In part : 

"The reports of the National Advisory Council provided for In section 4(a)(6) of the 
Bretton Woods Agreements Act * * *". The original text probably should have read 
"section 4(6) (6)". 22 U.S.C. 286b (b) (6). 



199 

may consider necevSsary to more effectively or efficiently accomplish 
the purposes of this Act or the purposes for which the Council is 
created. 

(c) The representatives of the United States on the Fund and the 
Bank, and the Export-Import Bank of Washington (and all other 
agencies of the Government to the extent that they make or partici- 
pate in the making of foreign loans or engage in foreign financial, 
exchange or monetary transactions) shall keep the Council fully in- 
formed of their activities and shall provide the Council with such 
further information or data in their possession as the Council may 
deem necessary to the appropriate discharge of its responsibilities 
under this Act. 

CERTAIN ACTS NOT TO BE TAKEN WITHOUT AUTHORIZATION 

Sec. 5.^ T'nless Congress by law authorizes such action, neither the 
President nor any person or agency shall on behalf of the United 
States (a) request or consent to any change in the quota of the United 
States under article III, section 2, of the Articles of Agreement of the 
Fund; (b) propose or agree to any change in the par value of the 
United States dollar imder article IV, section 5, or article XX, section 
4, of the Articles of Agreement of the Fund^ or approve any general 
change in par values under article IV, section 7;^ (c) subscribe to 
additional shares of stock under article II, section 3, of the Articles 
of Agreement of the Bank; (d) accept any amendment under article 
XVII of the Articles of Agreement of the Fund or article VIII of the 
Articles of Agreement of the Bank ; (e) make any loan to the Fund or 
the Bank.^'* Unless Congress by law authorizes such action, no gover- 
nor or alternate appointed to represent the United States shall vote 
for an increase of capital stock of the Bank under article II, section 2, 
of the Articles of Agreement of the Bank, if such increase involves an 
increased subscription on the part of the United States, 

DEPOSITORIES 

Sec. 6. Any Federal Reserve bank which is requested to do so by 
the Fund or the Bank shall act as its depository or as its fiscal agent, 
and the Board of Governors of the Federal Reserve System shall 



8 22 U.S.C. 286c. as amended by sec. 1(2) of Public Law 89-126. August 14. 1965 (79 
Stat. 519). by adding at the end of sec. 5 the following: "if such increase Involves an 
increased subscription on the part of the T'nited States." 

e Pursuant to Public Law 92-268. S6 Stat. 116. March 31. 1972. the Secretary of the 
Treasnrv notified the International Monetary Fund of a change In the par value of the 
United States dollar from one thirty-fifth of a fine troy ounce of gold to one thirty-eighth 
of a fine troy ounce of gold, effective May 8, 1972. 

1" Sec. .3 of Public Law 94-564 provides that upon entry into force of the amendments to 
the -\rticles of Agreement of the IMF. the first sentence of Sec. 5 shall read as follows : 

'Tnless Congress by law authorizes such action, neither the President nor any person 
or agency shall on behalf of the United States (a) renuest or consent to any change In the 
nuota of the United States under article III. section 2(a), of the Articles of Agroement of 
the Fund : (b) propose a par value for the I''nlted States dollar under paragraph 2. para- 
graph 4. or paragraph 10 of schedule C of the Articles of Agreement of the Fund : (c) 
propose any change in the par value of the Ignited States dollar under paragraph 6 of 
schedule C of the Articles of .\greement of the Fund, or approve anv general rhange in 
par values under paragraph 11 of schedule C: (d) subscribe to additional shares of stock- 
under article IT. section .3. of the Articles of Agreement of the Bank: (e) excppt anv 
amendment under article XXVIII of the Articles of Agreement of the Fund or articjp VIII 
of the Articles of Arreement of the Bank: (f) make anv loan to tlie Fund or the Bank: 
(g) approve the establishment of any additional trust fund, for the special benefit of a 
single member, or of a particular segment of the membership, of the Fund." 



200 

supervise and direct the carrying out of these functions by the Federal 
Reserve banks. 

PAYMENT OF SUBSCRIPTIONS 

Sec. 7. (a) Subsection (c) of section 10 of the Gold Reserve Act 
of 1934, as amended (U.S.C., title 31, sec. 822a) , is amended to read 
as follows : 

"(c) The Secretary of the Treasury is directed to use $1,800,000,000 
of the fund established in this section to pay part of the subscription 
of the United States to the International Monetary Fund; and any 
repayment thereof shall be covered into the Treasury as a miscella- 
neous receipt." 

(b) ^^ The Secretary of the Treasury is authorized to pay the balance 
of the subscription of the United States to the Fund not provided for 
in subsection (a) and to pay the subscription of the United States to 
the Bank from time to time when payments are required to be made 
to the Bank. For the purpose of making these payments, the Secre- 
tary of the Treasury is authorized to use as a public-debt transaction 
$8,676,000,000 of the proceeds of any securities hereafter issued under 
the Second Liberty Bond Act, as amended, and the purposes for which 
securities may be issued under that Act are extended to include sucli 
purpose. Payment under this subsection of the subscription of the 
United States to the Fund or the Bank and repayments thereof shall 
be treated as public-debt transactions of the United States. 

(c) For tlio purpose of keeping to a minimum the cost to the 
United States of participation in the Fimd and the Bank, the Secretary 
of the Treasury, after paying the subscription of the United States to 
the Fund, and any part of the subscription of the United States to the 
Bank required to be made imder article II, section 7 (i) , of the Articles 
of Agreement of the Bank, is authorized and directed to issue special 
notes of the United States from time to time at par and to deliver such 
notes to the Fund and the Bank in exchange for dollars to the extent 
permitted by the respective Articles of Agreement. The special notes 
provided for in this subsection shall be issued under the authority and 
subject to the provisions of the Second Liberty Bond Act, as amended, 
and the purposes for which securities may be issued under that Act 
are extended to include the purposes for which special notes are 
authorized and directed to be issued under the subsection, but such 
notes shall bear no interest, shall be non-negotiable, and shall be pay- 
able on demand of the Fund or the Bank, as the case may be. The 
face amount of special notes issued to the Fund under the authority of 
this subsection and outstanding at any one time shall not exceed in 
the aggregate the amount of the subscription of the United States 
actually paid to the Fund and the dollar equivalent of currencies and 
in accordance with Articles of Agreement,^^ and the face amount 
gold which the United States shall have purchased from the Fund 
of such notes issued to the Bank and outstanding at any one time shall 
not exceed in the aggregate the amount of the subscription of the 

n Section 2 of Public Law 86-48 (73 Stat. 80). struck out the words "of $950,000,000" 
and substituted "$8,675,000,000" for the number "Jp4.125.000.000". 

" The words beginning at "and" and ending at "Agreement" were added by sec. 2 of 
Public Law 87-490, June 19, 1962 (76 Stat. 105). 



201 

United States actually paid to the Bank under article II, section 7(i), 
of the Articles of Agreement of the Bank 

(d) Any payment made to the United States bv the Fund or the 
Bank as a distribution of net income shall be covered into the Treasury 
as a miscellaneous receipt. 

OBTAINING AND FURNISHING INFORMATION 

Sec. 8.^^ (a) Whenever a reciuest is made by the Fund to the United 
States as a member to furnish data under article VIII, section 5, of 
the Articles of Agreement of the Fund, the President may, through 




'quest. In making 
seek to collect the information only in such detail as is necessary to 
comply with the request of the Fund. Xo information so acquired 
sliall be furnished to the Fund in such detail that the affaii-s of any 
person are disclosed. 

(b) In the event any person refuses to furnish such information 
when requested to do so, the President, through any designated gov- 
ernmental agency, may by subpoena require such person to appear 
and testify or to appear and produce records and other documents, or 
both. In case of contumacy by, or refusal to obey a subpoena served 
upon any such person, the district court for any district in which such 
person is found or resides or transacts business, upon application bv 
the President or any governmental agency designated by him, shall 
have jurisdiction to issue an order requiring such person to appear 
and give testimony or appear and produce records and documents, or 
both ; and any failure to obey such order of the court may be punished 
by such court as a contempt thereof. 

(c) It shall be unlawful for any officer or employee of the Govern- 
ment, or for any adviser or consultant to the Government, to disclose, 
otherwise than in the course of official duty, any information obtained 
imder this section, or to use any such information for his personal 
benefit. Whoever violates any of the provisions of this subsection 
shall, upon conviction, be fined not more than, $5,000, or imprisoned 
for not more than five years, or both. 

(d) Tlie term "person" as used in this section means an individual, 
partnership, corporation or association. 

FINANCIAL TRANSACTIONS WITH FOREIGN GOVERNMENTS IN DEFAULT 

Sec. 9. The Act entitled "An Act to prohibit financial transactions 
with any foreign government in default of its obligations to the 
United States'-, approved April 13, 1934 (U.S.C, title 31, sec. 804a), 
is amended by adding at the end thereof a new section to read as 
follows : 

"Sec. 3. Wliile any foreign government is a member both of the 
International Monetary Fund and of the International Bank for Re- 
construction and Development, this Act shall not apply to the sale 
or purchase of bonds, securities, or other obligations of such govem- 

" 22 U.S.C. 286f. 



20-594 O - 78 - 14 



202 

ment or any political subdivision thereof or of any organization or 
association acting for or on behalf of such government or political 
subdivision, or to the making of any loan to such government, political 
subdivision, organization, or association." 

JURISDICTnON AND VENUE OP AOnONB 

Sec. 10. For the purpose of any action which may be brought 
within the United States or its Territories or possessions by or against 
the Fund or the Bank in accordance with the Articles of Agreement of 
the Fund or the Articles of Agreement of the Bank, the Fund or the 
Bank, as the case may be, shall be deemed to be an inhabitant of the 
Federal judicial district in which its principal office in the United 
States is located, and any such action at law or in equity to which 
either the Fund or the Bank shall be a party shall be deemed to arise 
under the laws of the United States, and the district courts of the 
United States shall have original jurisdiction of any such action. 
When either the Fund or the Bank is a defendant in any such action, 
it may, at any time before the trial thereof, remove such action from 
a State court into the district court of the United States for the proper 
district by following the procedure for removal of causes otherwise 
provided by law. 

STATUS, IMMUNITIES AND PRIVILBaES 

Sec. 11. The provisions of article IX, sections 2 to 9, both inclu- 
sive, and the first sentence of article VIII, section 2(b) , of the Articles 
of Agreement of the Fund, and the provisions of article VI, section 
5(i), and article VII, sections 2 to 9, both inclusive, of the Articles of 
Agreement of the Bank, shall have full force and effect in the United 
States and its Territories and possessions upon acceptance of member- 
ship by the United States in, and the establishment of, the Fund and 
the Bank, respectively. 

STABILIZATION LOANS BY THE BANK 

Sec. 12. The governor and executive director of the Bank ap- 
pointed by the United States are hereby directed to obtain promptly 
an official interpretation by the Bank as to its authority to make or 
guarantee loans for programs of economic reconstruction and the 
reconstruction of monetary systems, including long-term stabilization 
loans. If the Bank does not interpret its powers to include the making 
or guaranteeing of such loans, the governor of the Bank representing 
the United States is hereby directed to propose promptly and support 
an amendment to the Articles of Agreement for the purpose of explic- 
itly authorizing the Bank, after consultation with the Fund, to make 
or guarantee such loans. The President is hereby authorized and 
directed to accept an amendment to that effect on behalf of the United 
States. 

STABILIZATION OPERATIONS BY THE FUND 

Sec. 13. (a) The governor and oxooutive director of the Fund 
appointed by the I'^nited States are hereby directed to obtain 



203 

promptly an official interpretation by the Fund as to whether its 
authority to use its resources extends beyond current monetary 
stabilization operations to ati'ord temporaiy assistance to inembers m 
connection with seasonal, cyclical, and emer<rency fluctuations in the 
balance of payments of any member for current transactions, and 
whether it has authority to use its resources to provide facilities for 
relief, reconstruction, or armaments, or to meet a large or sustained 
outflow of capital on the pa it of any memljer. 

(b) If the interpi-etation by the Fund answers in the affirmative 
anv of the questions stated in subsection (a), the govenior of the 
Fund representing the United States is hereby directed to propose 
promptly and support an amendment to the Articles of Agreement for 
the purpose of expressly negativing such interpretation. The Presi- 
dent is hereby authorized and directed to accept an amendment to that 
effect on behalf of the United States. 

FURTHER PROMOTION' OF INTERXATIOXAL ECONOMIC RELATIONS 

Sec. 14. In the realization that additional measures of interna- 
tional economic cooperation are necessary to facilitate the expansion 
and balanced (rrowtli of international trade and render most elective 
the operations of the Fund and the Bank, it is hereby declared to be 
the policy of the United States to seek to bring about further agree- 
ment and cooperation among nations and international bodies, as soon 
as possible, on waj^s and means which will best reduce obstacles to and 
restrictions upon international trade, eliminate unfair trade practices, 
promote mutually advantaofeous commercial relations, and otherwise 
facilitate the expansion and balanced growth of international trade 
and promote the stability of international economic relations. In con- 
sidering the policies of the United States in foreign lending and the 
policies of the Fund and the Bank, particularly in conducting ex- 
change transactions, the Council and the United States representa- 
tives on the Fund and the Bank shall give careful consideration to 
the progress which has been made in achieving such agreement and 
cooperation. 

Sec. 15." (a) Any securities issued by International Bank for Re- 
construction and Development (including any guajfinty by the Bank, 

" 22 r.S.C. 2<;6k-l. Sec. 1.") added by sec. 2 of Public Law 81-142, June 29, 1949 (63 
Stat. 29S-299). Sec. 1 ot this law provides as follows : 

"That paragraph Seventh of section 8 of the National Bank Act. as amended (U.S.C. 
title 12, sec. i4), is amended by adding to the end thereor tne following new sentence: 
•The limitations ana restrictions herein contained as to dealing In and underwntinjr In- 
reatment securities shall not apply to obligations issued by the International Bank for 
Reconstruction and Development which are at the time eligible for purchase by a national 
bank for Its own account : Provided, That no association shall hold obligations issued by 
said bank as a result of underwriting, dealing, or purchasing for its own account (and 
for this purpose obligations as to which It is under commitment shall be deemed to be held 
by It) m a total amount exceeding at any one time 10 per centum of its capital stock actu- 
ally paid In and unimpaired and 10 per centum of Ita unimpaired surplus fund'." 

Sec. 3 of this law, provides as follows : 

"SUSPlNSIOIf OF RIGHT OF INTlRyATIOJCAI, BAWK TO ISSUB SBCURITTES UNDBR 8ECTTON 288 

K-1 : REPORT OF sicuRiTiis AND ixCHANQi coHMissioif [22 U.S.C. 286k-2. Heading 
Inserted by United States Code.] 

"Sec. 3. The Securities and Exchange Commission actlne in consultation with the 
National Advisory Touncil on International Monetary and Financial Problems is author- 
ized to snsnend the provisions of sectton 15(a) of the Bretton Woods Agreements Act pt 
any time as to any or all secnrlties issued or guaranteed by the Bank the period 
of sucb suspension. The Commission shall Include in Its annual reports to Congres* such 
information as it shall doeni advisable with recrar*! to the operations and effect «>f this Art 
and In connection therewith shall include any views submitted for lucb purpos* by any 
association of dealers registered with the Commission." 



204 

w'hether or not limited in scope), and any securities guaranteed by 
the Bank as to both principal and interest, shall be deemed to be 
exempted securities within the meaning of paragraph (A) (2) of 
section 3 of the Act of May 27, 1933, as amended (tJ.S.C., title 15, 
sec. 77c), and paragraph (a) (12) of section 3 of the Act of June 
6, 1934, as amended (U.S.C, title 15, sec. 78c). The Bank shall file 
with the Securities and Exchange Commission such annual and other 
reports with regard to such securities as the Commission shall deter- 
mine to be appropriate in view of the special character of the Bank 
and its operations and necessary in the public interest for the protec- 
tion of investors. 

(b) The reports of the National Advisory Council provided for in 
section 4(a) (6)^^^ of the Bretton Woods Agreements Act shall also 
cover and include the effectiveness of the provisions of section 15 (a) of 
this Act and the exemption for securities issued by the Bank provided 
by Section 8 of the National Bank Act in f acilitatmg the operations of 
the Bank and the extent to which the operations of the Bank may 
assist in financing European recovery and the reconstruction and de- 
velopment of the economic resources of member countries of the Bank 
and the recommendations of the Council as to any modifications if 
may deem desirable in the provisions of this Act. 

Sec. 16.^^ (a) The United States Governor of the Fund is author- 
ized to request and consent to an increase of $1,375,000,000 in the 
quota of the United States under article III, section 2, of the articles 
of agreement of the Fund as proposed in the resolution of the Board 
of Governors of the Fund dated February 2, 1959. 

(b) The United States Governor of the Bank is authorized (1) to 
vote for increases in the capital stock of the Bank under article II, 
section 2, of the Articles of Agreement of the Bank, as recommended 
in the resolution of the Board of Governors of the Bank dated Febru- 
ary 2, 1959, and (2) if such increases become effective, to subscribe on 
behalf of the United States to thirty -one thousand seven hundred and 
fifty additional shares of stock imder article II, section 3, of the Ar- 
ticles of Agreement of the Bank. 

Sec. 17.^' (a) In order to carry out the purposes of the decision of 
January 5, 1962, of the Executive Directors of the International Mon- 
etary Fund, the Secretary of the Treasury is authorized to make loans, 
not to exceed $2,000,000,000 outstanding at any one time, to the Fund 
under article VII, section 2(i), of the Articles of Agreement of the 
Fund.^^ Any loan under the authority granted in this subsection shall 
be made with due regard to the present and prospective balance of 
payments and reserve position of the United States. 

(b) For the purpose of making loans to the International Mone- 
tary Fund pursuant to this section, there is hereby authorized to be 
appropriated $2,000,000,000, to remain available until expended to 
meet calls by the International Monetary Fund. Any payments made 

15 This should probably have read "section 4(b)(6)." See footnote 7 on page 19S. 

"Added by Sec. 1 of Public Law 86-48. June 17. 1959 (7.3 Stat. 80). 

IT Added by Public Law 87-490. June 19. 1962 (76 Stat. lO.i). 

1" Sec. 4 of Public Law 94-564 provides that upon entry Into force of the amendments 
to the Articles of Agreement of the IMF, the first sentence of Sec. 17(a) shall read as 
follows : 

"In order to carry out the purposes of the decision of January 5. 1062, of the Executive 
Directors of the International ^Monetary Fund, the Secretary of the Treasury is author- 
ized to make loans, not to exceed $2,000,000,000 outstandins at any one time, to the 
Fund under article VII, section l(i), of the Articles of Agreement of the Fund." 



205 

to the United States by the International Monetary Funds as a re- 
payment on account of the principal of a loan made under this section 
shall continue to be available for loans to the International Monetary 
Fund. 

(c) Payments of interest and charges to the United States on ac- 
count of any loan to the International Monetary Fund shall be 
covered into the Treasury as miscellaneous receipts. In addition to 
the amount authorized in subsection (b), there is hereby authorized 
to be appropriated such amounts as may be necessary for the payment 
of charges in connection with any purchases of currencies or gold by 
the United States from the International Monetary Fund. 

Sec. 18.^^ Any purchases of curroiicies or gold hy the United States 
from the International Monetary Fund may be transferred to and 
administered by the fund established by section 10 of the Grold Reserve 
Act of 1934, as amended (31 U.S.C. 822a), for use in accordance with 
the provisions of that section. The Secretary of the Treasury is au- 
thorized to utilize the resources of that fund for the purpose of any 
repayments in connection with such transactions. 

Sec. 19.^^ The United States Governor of the Bank is authorized to 
vote for an increase of $1,000,000,000 in the authorized capital stock 
of the Bank under Article II, section 2, of the articles of agreement of 
the Bank, as recommended in the report, dated November 6, 1962, to 
the Board of Governors of the Bank by the Bank's Executive 
Directors. 

Sec. 20.2« (a) The United States Governor of the Fund is author- 
ized to consent to an increase of $1,035,000,000 in the quota of the 
United States in the Fund. 

(b) In order to pay the increase in the United States subscription 
to the Fund provided for in this section, there is hereby authorized to 
be appropriated $1,035,000,000, to remain available until expended. 

Sec. 21.=^ The United States Governor of the Bank is authorized to 
agree to an amendment to the articles of agreement of the Bank to 
permit the Bank to make, participate in, or guarantee loans to the 
International Finance Corporation for use in the lending operations 
of the latter. 

Sec. 22."- (a) The United States Governor of the Fund is author- 
ized to consent to an increase of $1,540,000,000 in the quota of the 
United States in the Fund. 

(b) In order to pay the increase in the United States quota in the 
Fund provided for in this section, there is hereby authorized to be 
appropriated $1,540,000,000, to remain available until expended. 

Sec. 23.- (a) The United States Governor of the Bank is authorized 
(1) to vote for an increase of $3,000,000,000 in the authorized capital 
stock of the Bank, and (2) if such increase becomes effective, to sub- 
scribe on behalf of the United States to two thousand four hundred 
and sixty-one additional shares of the capital stock of the Bank. 

(b) In order to pay for the increase in the United States subscrip- 
tion to the Bank provided for in this section, there is hereby authorized 
to l)e appropriated $246,100,000 to remain available unt'il expended. 

" ->^^P<1 ^y Public T^w 88-178. 77 Stat. 334. approved November 13. 1963. 
»> Added by Public Law 89-31. 79 Stat. 119. approved June 2. 1965. 
=^ Added by Public Law 89-126. 79 Stat. r)19. approved August 14. 196r.. 
=» Added by Public Law 91-599. 84 Stat. 1657, approved December 30, 1970. 



206 

Sec. 24.2^ The United States Governor of the Fund is authorized to 
accept the amendments to the Articles of Agreement of the Fund ap- 
proved in resolution numbered 31^ of the Board of Governors of the 
Fund. 

Sec. 25.2^ The United States Governor of the Fund is authorized to 
consent to an increase in the quota of the United States in the Fund 
equivalent to 1,705 million Special Drawing Rights. 

Sec. 26.^^ The United States Governor of the Fund is directed to vote 
against the establishment of a Council authorized under Article XII, 
Section 1 of the Fund Articles of Agreement as amended, if under any 
circumstances the United States' vote in the Council would be less than 
its weighted vote in the Fund. 

Sec. 27.2* (a) The United States Governor of the Bank is 
authorized — 

(1) to vote for an increase of seventy thousand shares in the 
authorized capital stock of the Bank ; and 

(2) if such increase becomes effective, to subscribe on behalf 
of the United States to thirteen thousand and five additional 
shares of the capital stock of the Bank: Provided^ hoicever^ That 
any subscription to additional shares shall be made only after the 
amount required for such subscription has been appropriated. 

(b) In order to pay for the increase in the United States subscrip- 
tion to the Bank provided for in this section, there are hereby author- 
ized to be appropriated, without fiscal year limitation, $1,568,856,318 
for payment by the Secretary of the Treasury.^^ 



23 Sections 24, 25. and 26 were added by Sec. 1 of Public Law 94-564, 90 Stat. 2660, 
approved October 19, 1976. 

2* Sec. 27 was added by Sec. 201 of Public Law 95-118 (91 Stat. 1067). 

25 The Foreign Assistance Appropriations Act. 1978 states: 

"For payment to the International Bank for Reconstruction and Development by the 
Secretary of the Treasury for the first installment of the I'nited States share of the 
Increase in subscriptions to the (1) paid-in capital stock, and (2) callable capital stock, 
$400,000,000, to remain available until expended : Provided, That no such payment may 
be made while the United States Executive Director to the Bank is compensated by the 
Bank at a rate in excess of the rate provided for an individual occupyinfr a position at 
level IV of the Executive Schedule under section 5315 of title 5, United States Code, or 
while the alternate United States Executive Director to the Bank is compensated by the 
Bank at a rate in excess of the rate provided for in individual occnpvine a Dosition at 
level V of the Executive Schedule under section 5316 of title 5, United States Code." 
However. Sec. 508 of the same Act reduced the *400 000.000 fijrure to $-^80,000. 000. This 
decrease in the appropriation was due to a 5% reduction of budget authority level for the 
Bank. 

That Act also expresse.s the sense of the Senate that the U.S. share of contributions to 
future replenishments of the Bank should not exceed 18.7% for paid-in capital or callable 
capital. 



4. Special Drawing Rights Act, as amended 

Public Law 90-349, [H.R. 16911], 82 Stat. 188, approved June 19, 1968 as amended 
by Public Law 91-599 [H.R. 18306], 84 Stat. 1657, approved December 30, 1970 

AN ACT To provide for United States participation in tlie facility based on 
Special Drawing Rights in the International Monetary Fund, and for other 
purposes. 



XoTE. — This Act was amended by section 5 of Public Law 94- 
564. However, section 5 of such Act does not become effective 
until entry into force of the amendments to the Articles of 
Agreement of the International Monetary Fund approved in 
Resolution Xuml)ered 31-4 of the Board of Governors of the 
Fund. Upon enactment of section 1 of Public Law 94-564 (Octo- 
ber 19, 1976), the United States Governor of the Fund was au- 
thorized to accept the amendments to the Articles of Agreement. 
Formal acceptance by the United States occurred on Novem- 
ber 15, 1976. However, at the publication date of this volume, 
these amendments had not yet entered into force. The changes in 
the Special Drawing Rights Act, as amended, which will be effec- 
tive upon such entry into force are included as footnotes to the 
appropriate sections. In addition, the complete text of Public 
Law 94-564 may be found on page 212. 



Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled,) That this Act may 
be cited as the "Special Drawing Rights Act." 

Sec. 2.^ The President is hereby authorized (a) to accept the amend- 
ment to the articles of agreement of the International Monetary Fund 
(hereinafter referred to as the "Fund"), attached to the April 1968 
report by the Executive Directors to the Board of Governors of the 
Fund, for the purpose of (i) establishing a facility based on Special 
Drawing Rights in the Fund and (ii) giving effect to certain modifi- 
cations in the present rules and practices of the Fund, and (b) to par- 
ticipate in the special drawing account established by the amendment. 

Sec. 3.* (a) Special Drawing Rights allocated to the United States 
pursuant to article XXIV '' of the Articles of Agreement of the Fund, 
and Special Drawing Rights otherwise acquired by the United States, 
shall be credited to the accoimt of, and administered as part of, the 
Exchange Stabilization Fund established by section 10 of the Gold 
Reserve Act of 1934, as amended (31 U.S.C. 822a) . 

« 22 use 286n. 

»22 U.S.C. 286o. 

' Sec. 5 of Public Law 04-564 provides that upon entry Into force of amendment.^ to 
the Articles of Agreement of the IMF, Sec. 3 shall be amended bv substitiitlnp "XVIII". 
"XX", -XXIV". and "XXV" in lieu of "XXIV. -'XXVl", "XXX", and "XXXI'. respec- 
tively, each time they appear. 

(207) 



208 

(b) The proceeds resulting from the use of Special Drawing Rights 
by the United States, and payments of interest to the United States 
Articles of Agreement of the Fund, shall be deposited in the Exchange 
Stabilization Fund. Currency payments by the United States in return 
for Special Drawing Rights, and payments of charges or assessments 
pursuant to article XXVI,^ article XXX, and article XXXI of the 
Articles of Agreement of the Fund, shall be made from the resources 
of the Exchange Stabilization Fund. 

Sec. 4t,^ (a) The Secretary of the Treasury is authorized to issue to 
the Federal Reserve banks, and such banks shall purchase, Special 
Drawing Right certificates in such form and in such denominations 
as he may determine, against any Special Drawing Rights held to the 
credit of the Exchange Stabilization Fund. Such certificates shall be 
issued and remain outstanding only for the purpose of financing the 
acquisition of Special Drawing Rights or for financing exchange 
stabilization operations. The amount of Special Drawing Right cer- 
tificates issued and outstanding shall at no time exceed the value of the 
Special Drawing Rights held against the Special Drawing Right 
certificates. The proceeds resulting from the issuance of Special 
Drawing Right certificates shall be covered into the Exchange Stabili- 
zation Fund. 

(b) Special Drawing Right certificates owned by the Federal Re- 
serve banks shall be redeemed from the resources of the Exchange 
Stabilization Fimd at such times and in such amounts as the Secre- 
tanr of the Treasury may determine. 

Sec. 5. (a) The third sentence of the second paragraph of section 
16 of the Federal Reserve Act, as amended (12 U.S.C. 412), is amend- 
ed by inserting "or Special Drawing Right certificates," after "gold 
certificates,". 

(b) The first sentence of the fifth paragraph of section 16 of the 
Federal Reserve Act, as amended (12 U.S.C. 415), is amended by in- 
serting "Special Drawing Right certificates," after "gold certificates,". 

(c) The seventh paragraph of section 16 of the Federal Reserve 
Act, as amended (12 U.S.C. 417), is amended by (i) inserting ", Spe- 
cial Drawing Right certificates," after "gold certificates" in the first 
sentence; (ii) inserting "Special Drawing Right certificates," after 
"gold certificates," in the second sentence; and (iii) inserting "and 
Special Drawing Right certificates" after "gold certificates" in the 
third sentence. 

(d) The fifteenth paragraph of section 16 of the Federal Reserve 
Act, as amended (12 U.S.C. 467), is amended by inserting (i) "or 
of Special Drawing Right certificates" after "gold certificates" in the 
first sentence, and (ii) by striking the third sentence and inserting in 
lieu thereof "Deposits so made shall be held subject to the orders of 
the Board of Governors of the Federal Reserve System and deposits 
of gold or gold certificates shall be payable in gold certificates, and 
deposits of Special Drawing Right certificates shall be payable in 
Special Drawing Right certificates, on the order of the Board of Gov- 
ernors of the Federal Reserve System to any Federal Reserve bank or 
Federal Reserve agent at the Treasury or at the subtreasury of the 
United States nearest the place of business of such Federal Reserve 
bank or such Federal Reserve agent." 

*22 U.S.C. 286p. 



209 

Sec. 6.^ Unless Congress })v law authorizes such action, neither the 
President nor any person or agency shall on behalf of the United 
States vote to allocate in each basic period Special Drawing Rights 
under article XXI V/' sections 2 and )i, of the Articles of Agreement of 
the Fund so that allocations to the United States in that period exceed 
an amount equal to the United States quota in the Fund as authorized 
under the Bretton Woods Agreements Act. 

Sec. 7.^ The provisions of article XXVII (h)*' of the Articles of 
Agreement of the Fund shall have full force and effect in the United 
States and its territories and possessions when the United States be- 
comes a participant in the special drawing account. 

»22 U.S.C. 286g. As amended and restated by sec. 2 of Public Law 91-599. 84 Stat. 
1657, approved Dec. 30. 1970. 

" Sec. 5 of Public Law 94-564 provides that upon entry Into force of amendments to 
the Articles of Agreement of the IMF. Sections 6 and 7 shall be amended by substituting 
"XVIII" and "XXI (b)" in lieu of "XXIV" and "XXVII(b)". respectively. 

'22 U.S.C. 286r. 



5. Par Value Modification Act, as amended 

Public Law 92-268 [S. 3160], 86 Stat. 116, approved March 31, 1972, as amended 
by Public Law 93-110 [H.R. 6912], 87 Stat. 352, approved September 21, 1973 

AN ACT To provide for a modification in the par value of the dollar, and 

for other purposes. 



Note. — Tliis Act was amended by section 6 of Public Law 94- 
564. However, section 6 of such Act does not become effective 
until entry into force of the amendments to the Articles of Agree- 
ment of the International Monetary Fund approved in Resolu- 
tion Numbered 31^ of the Board of Governors of the Fund. 
Upon enactment of section 1 of Public Law 94-564 (October 19, 
1976), the L^nited States Governor of the Fund was authorized 
to accept the amendments to the Articles of Agreement. Formal 
acceptance by the United States occurred on November 15, 1976. 
However, at the publication date of this volume, these amend- 
ments had not yet entered into force. The changes in the Par 
Value ^lodification Act, as amended, which will be effective upon 
such entry into force are included as footnotes to the appropriate 
section. In addition, the complete text of Public Law 94-564 may 
be found on page 212. 



Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled. 

Section 1. This Act may be cited as the "Par Value Modification 
Act". 

Sec. 2.^ The Secretary of the Treasury is hereby authorized and 
directed to take the steps necessary to establish a new par value of the 
dollar of $1 equals 0.828948 Special Drawing Right or, the equivalent 
in terms of gold, of forty-two and two-ninths dollars per fine troy 
ounce of gold.^ When established such par value shall be the legal 
standard for defining the relationship of the dollar to gold for the pur- 
pose of issuing gold certificates pursuant to section 14(c) of the Gold 
Reserve Act of 1934 (31 U.S.C. 405b) . 

Sec. 3. The Secretary of the Treasury is authorized and directed to 
maintain the value in terms of gold of the holdings of United States 
dollars of the International Monetary Fund, the International Bank 
for Reconstruction and Development, the Inter- American Develop- 
ment Bank, the International Development Association, and the Asian 

* Sec. 6 of Public Law 94-564 provides that upon entry into force of the amendments to 
Articles of Agreement of the IMF. Sec. 2 shall be repealed. 

2 Public Law 93-110 deleted the words "one thirty-eighth of a fine troy ounce of gold 
and Inserted In lieu thereof the following; "0.828948 Special Drawing Right or, the 
equivalent In terms of gold, of forty-two and two-ninths dollars per fine troy ounce or 
gold." 

(210) 



211 

Development Bank to the extent provided in the articles of agreement 
of such institutions. There is hereby authorized to be appropriated, to 
remain available until expended, such amounts as may be necessary to 
provide for such maintenance of value. 

Sec. 4. The increase in the value of the gold held by the United 
States (including the gold held as security for gold certificates) result- 
ing from the change m the par value of the dollar authorized by sec- 
tion 2 of this Act shall be covered into the Treasury as a miscellaneous 
receipt 

Sec. 5.^ It is the sense of the Congress that the President shall take 
all appropriate action to expedite realization of the international 
monetary reform noted at the Smithsonian on December 18, 1971. 



In addition to the amendments to the Par Value Modification 
Act made by Public Law 93-110, 87 Stat. 352, approved Sep- 
tember 21, 1973, section 3 of Public Law 93-110 as amended pro- 
vided as follows : 

Sf:c. 3. (a) Sections 3 and 4 of the Gold Keserve Act of 1934 
(31 U.S.C. 442 and 443) are repealed. 

"(b) * No provision of any law in effect on the drtte of enact- 
ment of this Act, and no rule, regulation, or order in effect on the 
date subsections (a) and (b) become effective may be construed 
to proliibit any person from purchasing, holding, selling, or other- 
wise dealing with gold in the United States or abroad. 

"^c) * Thf^ provisions of subsections (a) and (b) of this section 
shall take effect either on December 31, 1974, or at any time prior 
to such ilate that the President finds and reports to Congress that 
international monetary reform shall have proceeded to the point 
where elimination of regulations on private ownership of gold 
will not adversely affect the United States' international mone- 
tary position." 



'Section 5 added by section 2 of Public Law 93-110 (87 Stat. 352). The remainder of 
the text to Public I^w 93-110 is retained on pajre 33.1 of text. 

* Amended by Section 2 of Public Law 93-373. 88 Stat. 445, approved August 14, 1974. 
Subsection (b) formerly read as follows : 

"(b) No provision of any law In effect on the date of enactment of this Act, and no 
rule, regulations, or order under authority of any such law, may be construed to prohibit 
any person from purchasing, holding, selling, or otherwise dealing with gold. 

Subsection (c) formerly read as follows : 

"(c) The provisions of this section, pertaining to gold, shall take effect when the Presi- 
dent finds and reports to the Congress that international monetary reform shall have 
proceeded to the point where elimination of regulations on private ownership of gold 
will not adversely affect the United States' international monetary position." 



6. Providing Amendments to the Bretton Woods Agreement Act 
Public Law 94-564 [H.R. 13955], 90 Stat. 2660, approved October 19, 1976 

AN ACT To provide for amendment of the Bretton Woods Agreements Act, and 

for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the Bretton 
Woods Agreements Act (22 U.S.C. 286-286k-2) is amended by adding 
at the end thereof the following new sections : 

"Sec. 24. The United States Governor of the Fund is authorized to 
accept the amendments to the Articles of Agreement of the Fund ap- 
proved in resolution numbered 31-4 of the Board of Governors of the 
Fund. 

"Sec. 25. The United States Governor of the Fund is authorized to 
consent to an increase in the quota of the United States in the Fund 
equivalent to 1,705 million Special Drawing Rights. 

"Sec. 26. The United States Governor of the Fund is directed to vote 
against the establishment of a Council authorized under Article XII, 
Section 1 of the Fund Articles of Agreement as amended, if under any 
circumstances the United States' vote in the Council would be less than 
its weighted vote in the Fund.". 

Sec. 2. Section 3 of the Bretton Woods Agreements Act (22 U.S.C. 
286a) shall be amended as follows : 

(1) section 3(c) shall be amended to read as follows: 

"(c) Should the provisions of Schedule D of the Articles of Agree- 
ment of the Fund apply, the Governor of the Fund shall also serve as 
councillor, shall designate an alternate for the councillor, and may 
designate associates." ; 

(2) a new^ section 3(d) shall be added to read as follows: 
"(d) No person shall be entitled to receive any salary or other 

compensation from the United States for services as a Governor, 
executive director, councillor, alternate, or associate.". 

Sec. 3. The first sentence of section 5 of the Bretton Woods Agree- 
ments Act (22 U.S.C. 286c) is amended to read as follows: "Unless 
Congress by law authorizes such action, neither the President nor any 
person or agency shall on behalf of the United States (a) request or 
consent to any change in the quota of the United States under article 
III, section 2(a), of the Articles of Agreement of the Fund; (b) 
propose a par value for the United States dollar under paragraph 2, 
paragraph 4, or paragraph 10 of schedule C of the Articles of Agree- 
ment of the Fund; (c) propose any change in the par value of the 
United States dollar under paragraph 6 of schedule C of the Articles 
of Agreement of the Fund, or approve any general change in par 
values under paragraph 11 of schedule C; (d) subscribe to additional 
shares of stock under article II, section 3, of the Articles of Agree- 
ment of the Bank; (e) accept any amendment under article XXVIII 

(212) 



213 

of the Articles of Agreement of the Fund or article VIII of the 
Articles of Agreement of the Bank; (f) make any loan to the Fund 
or the Bank; (g) approve the establishment of any additional trust 
fund, for the special benefit of a single member, or of a particular 
segment of the membership, of the Fund.". 

Sec. 4. The first sentence of section IT (a) of the Bretton AVoods 
Agreements Act (22 U.8.C. 28()e-2(a) ) is amended to read as follows: 
"In order to carry out the purposes of the decision of January 5, 1962, 
of the Executive Directoi-s of the International Monetary Fund, the 
Secretary of the Treasury is authorized to make loans, not to exceed 
$2,000,000,000 outstanding at any one time, to the Fund under article 
VII, section l(i), of the Articles of Agreement of the Fund.". 

Sec. 5. The Special Drawing Rights Act (22 V.S.C. 286n-r) is 
amended by : 

(1) deleting "article XXIV" in section 3(a) and inserting in 
lieu thereof "article XVIII" ; 

(2) deleting "article XXVI, article XXX, and article XXXI" 
in section '3(b). wherever it appeal's, and inserting in lieu thereof 
"article XX, article XXIV, and article XXV": 

(3) deleting "article XXIV" in section 6 and inserting in lieu 
thereof "article XVIII": 

(4) deleting "article XXVII (b)" in section 7 and inserting in 
lieu thereof "article XXI (b)". 

Sec. 6. Section 2 of the Par Value Modification Act (31 I^S.C. 449) 
is hereby repealed. 

Sec. 7. Section 10(a) of the Gold Reserve Act of 1934 (31 U.S.C. 
822a (a)) is amended to read as follows: 

"Sec. 10. (a) The Secretary of the Treasury, with the approval of 
the President, directly or through such agencies as he may designate, 
is authorized, for the account of the fund established in this section, 
to deal in gold and foreign exchange and such other instruments of 
credit and securities as he may deem necessary to and consistent with 
the United States obligations in the International Monetary Fund. 
The Secretary of the Treasury shall annually make a report on the 
operations of the fund to the President and to the Congress.". 

Sec. 8. Section 14(c) of the Gold Reserve Act of 1934 (31 U.S.C. 
405b) is amended to read as follows: "The Secretary of the Treasury 
is authorized to issue gold certificates in such form and in such denom- 
inations as he may determine, against any gold held by the United 
States Treasury. The amount of gold certificates issued and outstand- 
ing shall at no time exceed the value, at the legal standard provided 
in section 2 of the Par Value Modification Act (31 U.S.C. 449) on the 
date of enactment of this amendment, of the gold so held against gold 
certificates.". 

Sec. 9. The amendments made by sections 2. 3, 4. 5, 6. and 7 of this 
Act shall l)ecome effective upon entry into force of the amendments 
to the Articles of Agreement of the International Monetary Fund 
approved in Resolution Xumbered 31-4 of the Board of Governors of 
the Fund.^ 



^ Ar pubUration of this volume, such ainendnipnts to the Articles of Agreement of the 
IMF had not yet entered Into force. 



7. Foreign Currency Reports^ 

Partial text of Public Law 93-110 [H.R. 6912], 87 Stat. 352, approved 

September 21, 1973 

AN ACT To amend the Par Value Modification Act, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 



TITLE II— FOREIGN CURRENCY REPORTS 

STATEMENT OP FINDINGS 

Sec. 201. The Congress finds that^- 

(1) movements of mobile capital can have a significant impact 
on the proper functioning of the international monetary system ; 

(2) it is important to have as complete and current data as 
feasible on the nature and source of these capital flows, including 
transactions by large United States business enterprises and their 
foreign affiliates ; 

(3) it is desirable to emphasize this objective by supplementing 
existing legal authoritv for the collection of data on capital flows 
contained m section 5(b) of the Emergency Banking Act of 1933 
(12 U.S.C. 95a) and section 8 of the Bretton Woods Agreements 
Act of 1945 (22 U.S.C. 286f ) . 

AUTHORITY TO PRESCRIBE REGULATIONS 

Sec. 202. (a) The Secretary of the Treasury (hereafter referred to 
as the "Secretary") is authorized and directed, under the authority 
of this title and any other authority conferred by law, to supplement 
regulations requiring the submission of reports on foreign currency 
transactions consistent with the statement of findings under section 
201. Regulations prescribed under this title shall require that such 
reports contain such information and be submitted in such manner 
and at such times, with reasonable exceptions and classifications, as 
may be necessary to carry out the policy of this title. 

(b) Reports required under this title shall cover foreign currency 
transactions conducted by any United States person and by any for- 
eign person controlled by a United States person as such terms are 
defined in section 7(f)(2)(A) and 7(f)(2)(C) of the Securities 
Exchange Act of 1934. 

1 See also reporting requirements for House Interparliamentary Groups, pages 518-525. 

(214) 



215 



ENFORCEMENT 



Sec. 203. (a) Whoever fails to submit a report required under any 
rule or regulation issued under this title may be assessed a civil penalty 
not exceeding $10,000 in a proceeding brought under subsection (b) of 
this section. 

(b) Whenever it appears to the Secretary that any person has failed 
to sulDmit a report required under any rule or regulation issued under 
this title or has violated any rule or regulation issued hereunder, the 
Secretary may in his discretion bring an action, in the proper district 
court of the United States or the proper United States court of any 
territory or other place subject to tne jurisdiction of the United 
States, seeking a mandatory injunction commanding such person to 
comply with such rule or regulation, and upon a proper showing a 
permanent or temporary injunction or restraining order shall be 
granted without bond, and additionally the sanction provided for 
failure to submit a report under subsection (a) . 



8. Executive Order 11269, as amended 

Executive Order 11269, February 14, 1966, 31 F.R. 2813, 3 CFR, 1966-70 Comp., 
p. 534, as amended by Executive Order 11334, March 7, 1967, 32 F.R. 
3933, 3 CFR, 1966-70 Comp., p. 627; Executive Order 11808, September 30, 1974, 
39 F.R. 35563; and by Executive Order 11977, March 14, 1977, 42 F.R. 14671 

National Advisory CouNCiii on International Monetary and 
FiNANCLAL Policies 

By virtue of the authority vested in me by Reorganization Plan No. 
4 of 1965 (30 F.R. 9353), and as President of the United States, it is 
ordered as follows : 

Section 1. Establishment of Council, (a) There is hereby estab- 
lished the National Advisory Council on International Monetary and 
Financial Policies, hereinafter referred to as the Council. 

(b) The Council shall b© composed of the following members: the 
Secretary of the Treasury, who shall be the chairman of the Council, 
the Assistant to the President for Economic Affairs, who shall be 
Deputy Chairman of the Council,^ the Secretary of State, the Secre- 
tary of Commerce, the Chairman of the Board of Governors of the 
Federal Reserve System, and the President of the Export-Import 
Bank of Washington.^ 

(c) Whenever matters within the jurisdiction of the Council may 
be of interest to Federal agencies not represented on the Council under 
Section 1(b) of this order, the Chairman of the Council may consult 
with such agencies and may invite them to designate representatives 
to participate in meetings and deliberations of the Council. 

Sec. 2. Functions of the Council, (a) Exclusive of the functions 
delegated by the provisions of Section 3, below, and subject to the 
limitations contained in subsection (b) of this Section, all of the func- 
tions which are now vested in the President in consequence of their 
transfer to him effected by the provisions of Section 1(b) of Reorga- 
nization Plan No. 4 of 1965 are hereby delegated to the Council. 

(b) The functions under Sections 4(a)^ and 4(b) (3)* of the Bret- 
ton Woods Agreements Act, including those made applicable to the In- 
ternational Finance Corporation, the Inter- American Development 
Bank, and the International Development Association (22 U.S.C. 286b 
(a) and (b) (3) ; 282b; 283b ;^ 284b), to the extent that such functions 
consist of coordination of policies, are hereby delegated to the Coimcil. 
The functions so delegated shall be deemed to include the authority to 
review proposed individual loan, financial, exchange, or monetary 
transactions to the extent necessary or desirable to effectuate the 
coordination of policies. 

iThe Assistant to the President was added as a member by Sec. 6(c) of Executive Order 
11808, September 30, 1974, 39 F.R. 35563. 

2 See footnote 2 on pa^e 181. 

3 For text see page 197. 
* For text see page 198. 

(216) 



217 

(c)" The Council shall perform with respect to the Asian Develop- 
ment Bank and African Development Fund/' the same functions as 
those delegated to it by subsections (a) and (b) of this section with 
respect to other international financial institutions. 

Sec. 3. Functions of the Secretary of the Treasury, (a) Functions 
which are now vested in the President in consequence of tlieir transfer 
to him effected by the provisions of Section 1(b) of Reorganization 
Plan No. 4 of 1965 are hereby delegated to the Secretary of the Treas- 
ury to the extent of the following : 

(1) Authority to instruct representatives of the United States to 
international financial organizations. 

(2) Authority provided for in Section 4(b)(4) of the Bretton 
Woods Agreements Act (22 U.S.C. 286b(b) (4) ).^ 

(b) In carrying out the functions delegated to him by subsection 
(a) of this Section the Secretary shall consult with the Council. 

(c) Nothing in this order shall be deemed to derogate from the 
responsibilities of the Secretary of State with respect to the foreign 
policy of the T'nited States. 

(d)" The Secretary of the Treasury shall perform, with respect to 
the Asian Development Bank and African Development Fund," the 
same functions as those delegated to him by subsections (a) and (b) 
of this section with respect to other international financial institutions. 

(e)® The Secretary of the Treasury is hereby delegated the func- 
tions conferred upon the President bv Section 208(b) and Section 207 
of the Act of May 31, 1070 (90 Stat. 598 and 594. 22 V.S.C. 290g-l 
and290g-5). 

Sec. 4. Information, (a) All agencies and officers of the Govern- 
ment, including representatives of the United States to international 
financial organizations, (1) shall keep the Council or the Secretary of 
the Treasury, as the case may be, fully informed concerning the 
foreign loan, financial, exchange, and monetary transactions in which 
they engage or may engage or with respect to which they have other 
responsibility, and (2) shall provide the Council and the Secretary 
with such further information or data in their possession as the Coun- 
cil or the Secretary, as the case may be, may deem necessary to the 
appropriate discharge of the responsibilities of the Council and Sec- 
retary under Sections 2 and 3 of this order, respectively. 

(b) The Council shall from time to time transmit to all appropriate 
agencies and officers of the Government statements of the policies of 
the Council under this order and such other information relating to the 
above-mentioned transactions or to the functions of the Coimcil here- 
under as the Council shall deem desirable. 

Sec. 5. Executive Order No. 10033. Section 2 (a) of Executive Order 
No. 10033 of February 8, 1949, is hereb}^ amended by substituting 
for the name "National Advisory Council on International Mone- 
tary and Financial Problems" the following: "National Advisory 
Council on International Monetary and Financal Policies." 

Sec. 6. Effective date. The ])ro\-i-irMw nf tliis ordci- sliall be i^ih 
tive as of January 1, 1966. 



(M'- 



'Sec. 2(c) and See. 8((1). wore nddod bv Kxpcutlvp Ordor li:?:i4. March 7. 1H07. :\2 VH 
3933. 

"The words "and African Development Fund" were adde<l bv Kxecntive Order 11977, 
March 14. 1977. 42 F.R. 14071. 

" For text, see pajre 198. 

8 Subsection (e) was added by Sec. 4 of Kxecntive Order 11977. Mardi 14. 1977. 42 F.H. 
14671. 



9. International Finance Corporation Act, as amended ^ 

Public Law 84-350 [S. 1894], 69 Stat. 669, approved August 11, 1955, as amended 
by Public Law 87-185 [H.R. 6765], 75 Stat. 413, approved August 30, 1961; 
Public Law 89-126 [S. 1742], 79 Stat. 519, approved August 14, 1965; and by 
Public Law 95-118 [H.R. 5262], 91 Stat. 1067 at 1068, approved October 3, 1977 

AN ACT To provide for the participation of the United States in the 
International Finance Corporation. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SHORT TITLE 

Section 1. This Act may be cited as the "International Finance 
Corporation Act." 

ACCEPTANCE OP MEMBERSHIP 

Sec. 2. The President is hereby authorized to accept membership 
for the United States in the International Finance Corporation (here- 
inafter referred to as the Corporation), provided for by the Articles 
of Agreement of the Corporation deposited in the archives of the 
International Bank for Reconstruction and Development. 

GOVERNOR, EXECUTIVE DIRECTOR, AND ALTERNATES 

Sec. 3. The governor and executive director of the International 
Bank for Reconstruction and Development, and the alternate for each 
of them, appointed under section 3 of the Bretton Woods Agreements 
Act, as amended (22 U.S.C. 286a), shall serve as governor, director 
and alternates, respectively, of the Corporation. 

NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND 
FINANCIAL PROBLEMS 

Sec. 4. The provisions of section 4 of the Bretton Woods Agree- 
ments Act, as amended (22 U.S.C. 286b), shall apply with respect to 
the Corporation to the same extent as with respect to the International 
Bank for Reconstruction and Development. Reports with respect to 
the Corporation under paragraphs 5 and 6 of subsection (b) of section 
4 of said Act, as amended, shall be included in the first report made 
thereunder after the establishment of the Corporation and in each 
succeeding report. 

CERTAIN ACTS NOT TO BE TAKEN WITHOUT AUTHORIZATION 

Sec. 5. Unless Congress by law authorizes such action, neither the 
President nor any person or agency shall on behalf of the United 

» 22 U.S.C. 282-2821. 

(218) 



219 

States (a) subscribe to additional shares of stock under article II, 
section 3, of the Articles of Agreement of the Corporation; (b) accept 
any amendment under article VII of the Articles of Agreement of 
the Corporation; (c) make any loan to the Corporation. The United 
States Governor of the Corporation is authorized to agree to an 
amendment to article III of the Articles of Agreement of the Corpora- 
tion to authorize the Corporation to make investments of its funds in 
capital stock and to limit the exercise of voting rights by the Corpo- 
ration unless exercise of such rights is deemed necessai*y by the Corpo- 
i-ation to protect its interests, as proposed in the resolution submitted 
by the Board of Directors on February 20, 1961.2 Unless Congress 
by law authorizes such action, no governor or alternate representing 
the United States shall vote for an increase of capital stock of the 
Corporation under article II, section 2(c) (ii), of the Articles of 
Agreement of the Corporation. 

DEPOSrrORIES 

Sec. 6. Any Federal Reserve bank which is recjuested to do so by 
the Corporation shall act as its depository or as its fiscal agent, and 
the Board of Governors of the Federal Reserve System shall siipervise 
and direct the carrying out of these functions by the Federal Reserve 
banks. 

PAYMENT OF SUBSCRIPTIONS 

Sec. 7. (a) The Secretary of the Treasury is authorized to pay the 
subscription of the United States to the Corporation and for this 
purpose is authorized to use as a public-debt transaction not to exceed 
$35,168,000 of the proceeds of any securities hereafter issued under the 
Second Liberty Bond Act, as amended, and the purposes for which 
securities may be issued under that Act are extended to include such 
purpose. Payment under this subsection of the subscription of the 
United States to the Corporation and any repayment thereof shall be 
treated as public-debt transactions of the United States. 

(b) Any payment of dividends made to the United States by the 
Corporation shall be covered into the Treasury as a miscellaneous 
receipt. 

JURISDICnON AND VENUE OF ACTIONS 

Sec. 8. For the purpose of any action which may be brought within 
the United States or its Territories or possessions by or against the 
Corporation in accordance with the Articles of Agreement of the 
Corporation, the Corporation shall be deemed to be an inhabitant of 
the Federal judicial district in which its principal office in the United 
States is located, and any such action at law or in equity to which the 
Corporation shall be a party shall be deemed to arise under the laws 
of the United States, and the district courts of the United States 
shall have original jurisdiction of any such action. AVhen the Corpo- 
ration is a defendant in any such action, it may, at any time before the 
trial thereof, remove such action from a State court into the district 



* This sentence added by Act authorlilng acceptance of an amendment to the arUclea of 
agreement of the International Finance Corporation permitting Inyestment In capital 
Btock. Public I^w 87-185 (75 Stat. 413), approved August 30. 1961. 



220 

court of the United States for the proper district by following the 
procedure for removal of causes otherwise provided by law. 



Sec. 9. The provisions of article V, section 5(d), and article VI, 
sections 2 to 9, both inclusive, of the Articles of Agreement of the 
Corporation shall have full force and effect in the United States and 
its Territories and possessions upon acceptance of membership by the 
United States in, and the establishment of, the Corporation. 

Sec. 10.^ The United States Governor of the Corporation is author- 
ized to agree to the amendments of the articles of agreement of the 
Corporation to remove the prohibition therein contained against the 
Corporation lending to or borrowing from the International Bank for 
Reconstruction and Development, and to place limitations on such 
borrowings. 

Sec. 11.* (a) The United States Governor of the Corporation is 
authorized — 

(1) to vote for an increase of five hundred and forty thousand 
shares in the authorized capital stock of the Corporation; and 

(2) if such increase becomes effective, to subscribe on behalf of 
the United States to one hundred and eleven thousand four hun- 
dred and ninety-three additional shares of the capital stock of the 
Corporation : Provided^ however^ That any commitment to make 
payment for such additional subscriptions shall be made subject 
to obtaining the necessary appropriations. 

(b) In order to pay for the increase in the United States sub- 
scription to the Corporation provided for in this section, there are 
hereby authorized to be appropriated, without fiscal year limitation, 
$111,493,000 for payment by the Secretary of the Treasury.^ 



3 Added by sec. 2 of Public Law 89-126 (79 Stat. 519), approved August 14, 1965. 

*Sec. 11 was added by Sec. 301 of Public Law 95-118 (91 Stat. 1068). 

5 The Foreign Assistance Appropriations Act, 1978 states : 

"For payment to the International Finance Corporation by the Secretary of the Treasury 
for the first installment of the United States share of the increase in subscriptions to 
capital stoclc, $38,000,000. to remain available until expended." 

That Act also expressed the sense of the Senate that the U.S. share of contributions 
to future replenishments of the Corporation should not exceed 23%. 



10. Inter-American Development Bank Act, as amended 

Public Law 86-147 [S. 1928], 73 Stat. 299; 22 IT.S.C. 283-283o, approved 
August 7, 1959, as amended by Public Law 88-259 [H.R. 7406], 78 Stat. 3, 
approved January 22, 1964; Public Law 89-6 [H.R. 45], 79 Stat. 23, approved 
March 24, 1965; Public Law 90-88 [H.R. 9547], 81 Stat. 226, approved Sep- 
tember 22, 1967; Public Law 90-325 [H.R. 15364], 82 Stat. 168, approved 
June 4, 1968; Public Law 91-599 [H.R. 18306], 84 Stat. 1657, approved 
December 30, 1970; Public Law 92-246 [S. 748], 86 Stat. 59, approved March 10, 
1972; Public Law 94-302 [H.R. 9721], 90 Stat. 591, apprvoed May 31, 1976; 
and by Public Law 95-118 [H.R. 5262], 91 Stat. 1067 at 1070, approved 
October 3, 1977 

AN ACT To provide for the participation of the United States In the Inter- 
American Development Bank. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

SHORT TITLB 

Section 1. This Act may be cited as the "Inter- American Develop- 
ment Banlc Act". 

AOOEFTANCE OF MEMBERSHIP 

Sec. 2. The President is hereby authorized to accept membership 
for the United States in the Inter- American Development Bank (here- 
inafter referred to as the Bank) , provided for by the agreement estab- 
lishing the bank (hereinafter referred to as the agreement) deposited 
in the archives of the Organization of American States. 

GOVERNOR, ALTERNATE GOVERNOR, AND EXECUTIVE DIRECTOR 

Sec. 3. (a) The President, by and with the advice and consent of 
the Senate, shall appoint a Governor of the Bank and an alternate for 
the governor. The term of office for the governor and the alternate 
governor shall be five years, but each shall remain in office until a suc- 
cessor has been appointed. 

(b) The President, by and with the advice and consent of the Senate, 
shall appoint an Executive Director of the Bank and an alternate 
Executive Director.^ Except as provided for in article XV, section 3, 
of the agreement, the term of office for the Executive Director shall 
be three years, but he shall remain in office until a successor has been 
appointed. 

(c) No person shall be entitled to receive any salary or other com- 
pensation from the United States for services as a governor, alter- 
nate governor, or Executive Director. 

iThe phrase "and an alternate Executtre" added by sec. 21(b) of Public Law 01-500 
(84 Stat 1658). 

(221) 



222 

NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND 
FINANCIAL PROBLEMS 

Sec. 4. The provisions of section 4 of the Bretton Woods Agree- 
ments Act, as amended (22 U.S.C. 286b), shall apply with respect 
to the Bank to the same extent as with respect to the International 
Bank for Reconstruction and Development and the International 
Monetary Fimd. Reports with respect to the Bank imder paragraphs 
(5) and (6) of subsection (b) of section 4 of said Act, as amended, 
shall be included in the first report made thereunder after the estab- 
lishment of the Bank and in each succeeding report. 

CERTAIN ACTS NOT TO BE TAKEN WTTHOtJT AUTHORIZATION 

Sec. 5. Unless Congress by law authorizes such action, neither the 
President nor any person or agency shall, on behalf of the United 
States, (a) subscribe to additional shares of stock imder article II, 
section 3, or article IIA, section 2,^ of the agreement: (b) request or 
consent to any change in the quota of the United States under article 
IV, section 3, of the agreement; (c) accept any amendment under 
article XII of the agreement; or (d) make a loan or provide other 
financing to the Bank, except that loans or other financing may be 
provided to the Bank by a United States agency created pursuant to 
an Act of Congress which is authorized by law to make loans or pro- 
vide other financing to international organizations. Unless Congress 
by law authorizes such action, no governor or alternate appointed to 
represent the United States shall vote for any increase of capital 
stock of the Bank under article II, section 2, or article IIA, section 1,^ 
of the agreement of any increase in the resources of the Fund for 
Special Operations under article IV, section 3(g) thereof. 

DEPOSITORIES 

Sec. 6. Any Federal Reserve Bank which is requested to do so by the 
Bank shall act as its depository or as its fiscal agent and the Board of 
Governors of the Federal Reserve System shall supervise and direct 
the carrying out of these functions by the Federal Reserve banks. 

PAYMENT OF SUBSCRIPTION 

Sec. 7. (a) There is hereby authorized to be appropriated, without 
fiscal year limitation, for the purchase of thirty-five thousand shares 
of capital stock in the Bank, $350 million. In addition, there is 
hereby authorized to be appropriated, without fiscal year limitation, 
for payment of the subscription of the United States to the Fund for 
Special Operations, $100 million.* 

*The words ", or article IIA, KPctlon 2," were added by Sec. 103(a)(2) of Public Law 
04-302. 

'The words "or article IIA, section 1," were added by Sec. 103(a)(2) of Public Law 
94-302. 

*Ah of October 23, 1962, CorjKresn has api>ror)rlate<l tbe entire KubKcrlptlon. See the 
following' appropriation Acts: 73 Stat. 44.'} (lur,U) ; ir> Stat. 721 (1901) and 70 Stat. 
11 OS. 

Title If of tbe F'or<'lKn Aid and Related AK«'n<'b'H Ajiproiirlation A«t, 19^54, Public Law 
hH-'lT,h, TJ Stat. 802, approv«-d .January 0. 1904, r«»nt;iln«Ml Ww followlii« provlHloti : "For 
payrrK-nt of «iib«crlpf lonn to tb** Intf-r Arru-rUan I)«'V«'IopiiM'nt H:inl< for «'Xp:iiisi<»ri of fb«* 
F'und for Sperlal <}\tcrn^\<iun. *.'i0.000,000 to r«'iii;iln av;ill;il»l«' until t'X\ti'\uW(\ : I'nniile.tl, 
Tbar tbl.H paraK^rapb «ba!l b<- fftf(\\\'f only ujton «'niictnn'nt Into law of aulliorl/lriK Ii-uIh- 
I;.tlon." «<-'tlon ^a.i of Pnbib- Law 88-259, 78 Stat. 3, approved January 22, 1904, 
enacted such authorlzlnj; let^lslatlon. 



223 

(b) P"or the purpose of keeping to a minimum the cost to the United 
States of participation in the Bank, the Secretary of the Treasury, 
after paying the requisite part of the subscription and quota of the 
United States in the Bank required to be made under article II, sec- 
tion 4, and article IV, section 3, respectively, of the agreement, is 
authorized and directed to issue special notes of the United States from 
time to time, at par, and to deliver such notes to the Bank in ex- 
change for dollars to the extent permitted by the agreement. The 
special notes provided for in this subsection shall be issued under the 
authority ana subject to the provisions of the Second Liberty Bond 
Act, as amended, and the purposes for which securities may be 
issued under that Act are extended to include the purposes for which 
special notes are authorized and directed to be issued under this sub- 
section, but such notes shall bear no interest, shall be nonnegotiable and 
shall be payable on demand of the Bank. The face amount of special 
notes issued to the Bank under the authority of this subsection and out- 
standing at any one time shall not exceed, in the aggregate, the amount 
of the subscription and quota of the United States actually paid to 
the Bank under article II, section 4, and article IV, section 3, respec- 
tively, of the agreement. 

(c) Any payment made to the United States by the Bank as a dis- 
tribution of net income shall be covered into the Treasury as a mis- 
cellaneous receipt 

JURISDICTION AND VENUE OF ACTION 

Sec. 8. For the purpose of any action which may be brought within 
the United States, its Territories or possessions, or the Commonwealth 
of Puerto Rico by or against the Bank in accordance with the agree- 
ment, the Bank shall be deemed to be an inhabitant of the Federal 
judicial district in which its principal office in the United States is 
located, and any such action at law or in equity to which the Bank 
shall be a party shall be deemed to arise under the laws of the United 
States, and the district courts of the United States shall have original 
jurisdiction of any such action. When the Bank is a defendant in any 
such action, it may, at any time before the trial thereof, remove such 
action from a State court into the district court of the United States 
for the proper district by following the procedure for removal of 
causes otnerwise provided by law. 

STATUS, IMMUNITIES AND PRIVILEGES 

Sec. 9. The provisions of article X. section 4(c), and article XI, 
sections 2 to 9, both inclusive, of the agreement shall have full force 
and effect in the United States, its Territories and possessions, and the 
Commonwealth of Puerto Rico, upon acceptance of membership by the 
United States in, and the establishment of, the Bank. 

8EOURITTE8 ISSUED BY BANK AS INVEST^IENT SECURITIES FOR NATIONAL 

BANKS 

Sec. 10. The last sentence of parajrraph seven of poction 5136 of the 
Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting 
after the words "International Bank for Reconstruction and Develop- 



224 

ment" the words "or the Inter- American Development Bank" and by 
striking the words "said Bank" and inserting in lieu thereof "either of 
said Banks". 

SECURITIES ISSUED BY BAXK AS EXEMPT SECURITIES: REPORT FILED WITH 
SECUBmES AND EXCHANGE COMMISSION 

Sec. 11. (a) Any securities issued by the Bank (including any 
guarantee by the Bank, whether or not limited in scope) in connection 
with raising of funds for including in the Bank's ^ capital resources as 
defined in article II, section 5, and article IIA. section 4.^ of the 
agreement, and any securities guaranteed by the Bank as to both the 
principal and interest to which the commitment in article II, section 
4(a) (ii). or article IIA, section 3(c). ^ of the agreement is expressly 
applicable, shall be deemed to be exempted securities within the 
meaning of paragraph (a) (2) of section 3 of the Act of May 27, 1933, 
as amended (15 U.S.C. 7Tc), and paragraph (a) (12) of section 3 of 
the Act of June 6, 1934, as amended (15 U.S.C. T8c). The Bank 
shall file with the Securities and Exchange Commission such annual 
and other reports with regard to such securities as the Commission 
shall determine to be appropriate in view of the special character 
of the Bank and its operations and necessary in the public interest 
or for the protection of investors. 

(b) The Securities and Exchange Commission, acting in consulta- 
tion with the National Advisory Council on International Monetary 
and Financial Problems, is authorized to suspend the provisions of 
subsection (a) at any time as to any or all securities issued or guaran- 
teed by the Bank during the period of such suspension. The Com- 
mission shall include in its annual reports to Congress such informa- 
tion as it shall deem advisable with regard to the operations and effect 
of this section and in connection therewith shall include any views 
submitted for such purpose by any association of dealers registered 
with the Commission. 

CERTAIN REPORTS REQUIRED 

Sec. 12. The reports of the National Advisory Council on Inter- 
national ^Monetary and Financial Problems provided for in section 
4(b) (6) of the Bretton Woods Agreements Act (and referred to in 
section 4 of this Act) shall also cover and include the effectiveness of 
the provisions of section 11 of this Act and the exemption for securi- 
ties issued by the Bank provided by section 5136 of the Revised 
Statutes in facilitating the operations of the Bank and the develop- 
ment of the economic resources of member countries of the Bank and 
the recommendations of the Council as to any modifications it may 
deem desirable in the provisions of this Act. 

Sec. 13/' The United States Governor of the Bank is hereby au- 
thorized (1) to vote (A) for increases in the authorized capital stock of 



5 Sec. 103fa)(3) of Public I/aw 94-302 deleted the word "ordinary" following "Banks", 
and added the word? "and article IIA. section 4," and "or article IIA. section 3(c),*'. 

•This spotVm was added bv section 1 of Public Law 88-259, 78 Stat. 3, approved 
January 22. 1964. 

Section 2(a) of Public Law 88-259 authorized the appropriation of $411,760,000. 
without fiscal year limitation, for payment of the increased United States subscription 
under section 13. 



225 

the Bank under article II, section 2, of the agreement, and (B) for an 
increase in the resources of the Fund for Special Operations under 
article IV, section 3, of the agreement, all as recommended bv the 
Executive Directors in a report dated March 18, 1963, to the Board 
of Governors of the Bank; (2) to agree on behalf of the United States 
to subscribe to its proportionate share of the $1,000,000,000 increase 
in the authorized callable capital stock of the Bank; and (3) to vote 
for an amendment to article VlII, section 3, of the agreement to pro- 
vide that the Board of Governors may, upon certain conditions, in- 
crease by one the number of Executive Directors. 

AUDIT ^ 

Sec. 14. (a) The Secretary of the Treasury shall instruct the United 
States Executive Director to propose the establishment by the Board 
of Executive Directors of a program of selective but continuing inde- 

gendcnt and comprehensive audit of the Inter- American Development 
lank, in accordance with such terms of reference as the Board of 
Executive Directors itself (or through a subcommittee), may pre- 
scribe. Such proposal shall provide that the audit reports be submitted 
to the Board of Executive Directors and to the Board of Governors. 

(b) The Comptroller General of the United States shall prepare for 
the Secretary of the Treasury the scope of the audit and the auditing 
and reporting standards for the use of the United States Executive 
Directors in assisting in the formulation of the terms of reference. 

(c) The reports of the National Advisory Council on International 
Monetary and Financial Policies to the Congress shall include, among 
other things, an appraisal of the effectiveness of the implementation 
and administration of the loans made by the Bank based upon the 
audit reports. The Comptroller General shall periodically review the 
reports of audit and finaings issued and report to the Secretary of the 
Treasury and the Congress any suggestions he might have in improv- 
ing the scope of the audit or auditing and reporting standards of the 
independent auditing firm, group, or staff. 

FUND FOR SPECIAL OPERATIOXS OF THE BANK ® 

Sec. 15. (a) The United States Governor of the Bank is hereby 
authorized to vote in favor of the resolution entitled "Increase of 
Resources of the Fund for Special Operations" proposed by the Gov- 
ernors at their annual meeting in April 1964, and now pending before 
the^ Board of Governors of the Bank. Upon the adoption of such reso- 
lution, the United States Governor is authorized to agree, on behalf of 
the United States, to pay to the Fund for Special Operations of the 
Bank, the sum of $750,000,000, in accordance with and subject to the 
terms and conditions of such resolution. 

(b) There is hereby authorized to be appropriated without fiscal 
year limitation, for the United States share in the increase in the 
resources of the Fund for Special Operations of the Bank, the sum of 
$750,000,000. 

•^ Section 14 was added by Public Law 90-88. 81 Stat. 227. approved September 22. 1967. 

* This section was added by Public Law 89-6. 70 Stat. 23. approved March 24. 196.=i. as 
section 14 and renumbered by Public I^w 90-SS. SI Stat. 226. approved September 22. 
1967. 



226 

(c) With respect to any dollars herein provided, the voting power 
of the United States shall be exercised for the purpose of disapproving 
any loan from the Fund for Special Operations of the Bank for any 
project, enterprise, or activity in any country, during any period for 
which the President has suspended assistance to the government of 
such country because of any action taken on or after January 1, 1962, 
by the government of such country or any government agency or sub- 
division within such country as specified in paragraph (A), (B), or 
(C) of subsection (e) (1) of section 620 of the Foreign Assistance Act 
of 1961, as amended, and the failure of such country within a reason- 
able time to take appropriate steps to discharge its obligations or 
provide relief in accordance with the provisions of such subsection. 

Sec. 16.^ (a) The United States Governor of the Bank is hereby 
authorized to vote in favor of the resolution entitled "Increase of 
$1,200,000,000 in Resources of Fund for Special Operations" proposed 
by the Governors at their annual meeting in April 1967 and now 
pending before the Board of Governors of the Bank. Upon the adop- 
tion of such resolution, the United States Governor is authorized to 
agree, on behalf of the United States, to pay to the Fund for Special 
Operations of the Bank, the sum of $900,000,000, in accordance with 
and subject to the terms and conditions of such resolution, and sub- 
ject to the further condition that in consideration of the United States 
balance-of-payments deficit any local cost financing, by project or 
otherwise, with the funds authorized under this section be neld to the 
minimum possible level. The United States Governor is also authorized 
to vote in favor of the amendment to Annex C of the agreement, now 
pending before the Board of Governors of the Bank, to modify the 
procedure emjloved in the election of Executive Directors. 

(b) T^ere is hereby authorized to be appropriated without fiscal 
year limitation, for the United States share in the increase in the 
resources of the fund for Special Operations of the Bank, the sum of 
$900,000,000. 

(c) The voting power of the United States shall be exercised for 
the purpose of disapproving any loan which might assist the recipient 
country directly or indirectly to acquire sophisticated or heavy mili- 
tary equipment. 

Sec. 17.^'' (a) The United States Governor of the Bank is hereby 
authorized (1) to vote for an increase in the authorized capital stock 
of the Bank under article II, section 2, of the a^eement as recom- 
mended by the Board of Executive Directors in its report of April 
1967, to the Board of Governors of the Bank; and (2) to agree on be- 
half of the United States to subscribe to its proportionate share of the 
$1,000,000,000 increase in the authorized callable capital stock of the 
Bank. 

(b) There is hereby authorized to be appropriated, without fiscal 
year limitation, for payment by the Secretary of the Treasury of the 
increased United States subscription to the capital stock of the Inter- 
American Development Bank, $411,760,000. 

Sec. 18.^^ (a) The United States Governor of the Bank is hereby 
authorized to vote in favor of the two resolutions proposed by the 

Section 16 was added by Public Law 90-88. 81 Stat. 226. approved September 22. 1967. 
1" Section 17 was added bv Public Law 90-.S25, 82 Stat. 168. approved June 4. 1968. 
" Section 18 was added by sec. 21 of Public Law 91-599. 84 Stat. 1658, approved 
December 30, 1970. 



227 

Governors at their annual meeting in April 1970 and now pending 
before the Board of Governors of the Bank, which provide for ( 1 ) an 
increase in the authorized capital stock to the Bank and additional 
subscriptions of members thereto and (2) an increase in the resources 
of the Fund for Special Operations and contributions thereto. Upon 
adoption of such resolutions the United States Governor is authorized 
to agree on behalf of the United States (1) to subscribe to eighty-two 
thousand three hundred and fifty-two shares of $10,000 par value of 
the increase in the authorized capital stock of the Bank of which 
sixty-seven thousand three hundred and fifty-two shall be callable 
shares and fifteen thousand shall be paid in and (2) to pay to 
the Fund for Special Operations an initial annual mstallment of 
$100,000,000 and, upon further authorization by the Congress, two 
subsequent annual installments of $450,000,000 each, in accordance 
with and subject to the terms and conditions of such resolutions. 

(b) There are hereby authorized to be appropriated, without fiscal 
year limitation, the amounts necessar;j^ for payment by the Secretary 
of the Treasury of (1) three annual mstallments of $50,000,000 each 
for the United States subscription to paid-in capital stock of the Bank ; 
(2) two installments of $336,760,000 each for the United States sub- 
scription to the callable capital stock of the Bank; and (3) one install- 
ment of $100,000,000 for the United States share of the increase in 
the resources of the Fund for Special Operations of the Bank. 

Sec. 19.^- (a) The United States Governor of the Bank is authorized 
to pay to the Fund for Special Operations two annual installments of 
$450,000,000 each in accordance with and subject to the terms and 
conditions of the resolution adopted by the Board of Governors on 
December 31, 1970, concerning an increase in the resources of the 
Fund for Special Operations and contributions thereto. 

(b) There are hereby authorized to be appropriated, without fiscal 
year limitation, the amounts necessary for payment by the Secretary 
of the Treasury of the two annual installments of $450,000,000 each 
for the United States share of the increase in the resources of the Fund 
for Special Operations of the Bank. 

Sec. 20.^= The United States Governor of the Bank is authorized to 
agree to amendments to the provisions of the articles of agreement as 
provided in proposed Board of Governors resolutions entitled (a) 
"Amendment of the Provisions of the Agreement Establishing the 
Bank with Respect to Membership and to Related Matters" and (b) 
"Amendment of the Provisions of the Agreement Establishing the 
Bank with Respect to the Election of Executive Directors". 

Sec. 21.^- The President shall instruct the United States Executive 
Director of the Bank to vote against any loan or other utilization of the 
funds of the Bank for the benefit of any country which has — 

(1) nationalized or expropriated or seized ownership or con- 
trol of property owned by any United States citizen or by any cor- 
poration, partnership, or association not less than 50 per centum 
of which IS beneficially owned by United States citizens ; 

(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
IS beneficially owned by United States citizens ; or 

"Sections 19 through 22 were added by Public Law 92-246. Sfi Stat. 59. approved 
March 10. 1972. 



228 

(3) imposed or enforced discriminatory taxes or other exac- 
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro- 
priating, or otherwise seizing ownership or control of property 
so owned ; 
unless the President determines that (A) an arranffement for prompt, 
adequate, and effective compensation has been made, (B) the parties 
have submitted the dispute to arbitration under the rules of the Con- 
vention for the Settlement of Investment Disputes, or (C) good faith 
negotiations are in progress aimed at providing prompt, adequate, and 
effective compensation under the applicable principles of interna- 
tional law. 

Sec. 22.^2 The Secretary of the Treasury shall instruct the United 
States Executive Director of the Bank to vote against any loan or 
other utilization of the funds of the Bank for the benefit of any coun- 
try with respect to which the President has made a determination, and 
so notified the Secretary of the Treasury, that the government of such 
country has failed to take adequate steps to prevent narcotic drugs 
and other controlled substances (as defined by the Comprehensive 
Drug Abuse Prevention and Control Act of 1970) produced or proc- 
essed, in whole or in part, in such country, or transported through such 
country, from being sold illegally within the jurisdiction of such coun- 
try to United States Government personnel or their dependents, or 
from entering the United States unlawfully. Such instruction shall 
continue in effect until the President determines, and so notifies the 
Secretary of the Treasury, that the government of such country has 
taken adequate steps to prevent such sale or entry of narcotic drugs 
and other controlled substances. 

Sec. 23.^^ The United States Governor of the Bank is authorized to 
vote for three proposed resolutions of the Board of Governors entitled 
(a) "Amendments to the Agreement Establishing the Bank with 
respect to the Creation of the Inter-Regional Capital Stock of the 
Bank and to Related Matters", (b) "General Rules Governing Admin- 
sion of Xonregional Countries to Membership in the Bank," and (c) 
"Increase in the Authorized Callable Ordinary Capital Stock and 
Subscriptions Thereto in Connection with the Admission of Non- 
regional ^lember Countries", which were submitted to the Board of 
Governors pursuant to a resolution of the Board of Executive Direc- 
tors approved on ^larch 4, 1975. 

Sec. 24.^* The United States Governor of the Bank is authorized to 
agree to the amendments to article II. section 1(b) and article lY. 
section 3(b) of the Agreement Establishinof the Bank, as proposed by 
the Board of Executive Directors, to provide for membership for the 
Bahamas and Guyana in the Bank at such times and in accordance 
with such terms as the Bank may determine. 

Sec. 25.^^^ The Ignited States Governor of the Bank is authorized to 
airree to the amendments to article III. sections 1, 4. and 6(b) of the 
Agreement Establishinof the Bank, as proposed bv the Board of Execu- 
tive Directors, to provide for lending to the Caribbean Development 
Bank. 



"!>2 rSC 2fi.^t. Sec 23 was added hv Sec. 103 Cni of Pnhllr Law 04-302. 
"22 r.S.C. 2S3u. Sec. 24 was added bv Sec. 103(a) of Public Law 94-v?02. 
«22 TTSC 2S3v, Sec. 25 was added by Sec. 103(a) of Public Law 94-302. 



229 

Sec. 26/" (a) The United States Governor of the Hank is liereby 
authorized to vote in favor of two resohitions proposed by the (jover- 
nors at a special meeting in July 1975, and now j)endin<r In^fore the 
Board of Governors of tlie Bank, which provide for (1) an increase 
in the authorized capital stock of the Bank and additional subscrip- 
tions of members thereto and (2) an increase in the resources of the 
Fuiul for Special Operations and contributions tliereto. Upon adop- 
tion of such resolutions, the United States Governor is authorized to 
agree on behalf of the United States (1) to subscribe to ninety-nine 
thousand four hundred and seventy-four shares of $10,000 par value 
of the increase in the authorized capital stock of the Bank of which 
eighty-nine thousand five hundred and twenty-six shall be callable 
shares and nine thousand nine hundred and forty-eight ^hall be paid 
in and (2) to contribute to the Fund for Special Operations 
$600,000,000, in accordance with and subject to the terms and condi- 
tions of such resolutions. 

(b) There are hereby authorized to be appropriated, without fiscal 
year limitation, the amounts necessarv for pavment bv the Secretary 
of the Treasury of (1) $1,199,997,873 for the United States sul>scrip- 
tion to the capital stock of the Bank and (2) $600,000,000 for the 
United States share of the increase in the resources of the Fund for 
Special Operations.^^ 

Sec. 27.^'' (a) The United States Governor of the Bank is hereby 
authorized to vote for an additional increase of one hundred and eight 
thousand shares of $10,000 par value in the authorized callable capital 
stock of the Bank as recommended in the resolution of the Board of 
Governors entitled '^Increase of US$4 Billion in the Authorized Capi- 
tal Stock and Subscriptions Thereto''. I^pon adoption of a Board of 
Governors resolution increasing the authorized capital stock of the 
Bank by such amount, the Ignited States Governor is authorized to 
agree on behalf of the United States to subscribe to thirty-seven thou- 
sand three hundred and three shares of $10,000 par value of such 

" 22 U.S.C. 283w. Sec. 26 was added by Sec. 101 of Public Law 94-302. 

1' Supplemental Appropriations Act. 1977 (91 Stat. 67) states : 

"For payment to the Inter-American Development Bank by the Secretary of the 
Treasury of the United States share of the increase in subscription to capital .stock and 
In the resources of the Fund for Special Operations, as authorized bv the Inter-.Vmerican 
Development Rank Act of May ^1. 1976 (Public Law 94-.'^02). $.316,000,000. to remain 
available until expended : of which not more than .< .'^6.000,000 shall be available for 
paid-in capital stock, not more than $120,000,000 shall be available for callable capital 
stock, and not more than $160,000,000 shall be available for the Fund for Special 
Operations." 

Foreign Assistance Appropriations Act. 1978 states : 

"For payment to the Inter-American Development Bank by the Secretary of the 
Treasury for the United States share of (1) the Increase in subscriptions to (a) paid-in 
cai)ital stock, and (b) callable capital stock, and (2) the fifth replenishment of the 
rpsources of the Fund for Special Operations as authorized bv the Act of Mav .'H. 1976 
(Public Law 94-.302). $.5.'^. 000. 000. to remain available until" expended : Provided. That 
no sucli payment may be made while the United States Executive Director to the Bank 
Is compensated by the Bank at a rate In excess of the rate provided for an individual 
occupylnjj a position at level IV of the Kxecutive Schedule under section .l.Sl.') of title 5. 
United States Code, or while the alternate United States Kxecutive Director to the Bank 
is compensated by the Bank at a rate in excess of the rate provided for an Individual 
occupying a position at level V of the Executive Schedule under section r)316 of title "», 
United States Code." 

However. Sec. oOS of the same Act reduced the $523,000,000 figure to $480,000,000. 
This decrease In the appropriation to the Bank was due to a reduction of the budget 
authority for the Bank. 

This Act also expressed a sen.<»e of the Senate that the U.S. share of contributions to 
future replenishments of the Bank should not exceed ?,A.i^^r of paid-in ordinary capital, 
callable ordinarv capital, paid-in interregional capital, or callable Interregional capital, ami 
40'^r of the Fund for Special Opertlons. 

" 22 U.S.C. 2S3x. Sec. 27 was added bv Sec. 101 of Public I«iw 94-302. 



230 

additional increase in callable capital in accordance with and subject 
to the terms and conditions of such resolution. 

(b) In order to pay for the increase in the United States subscrip- 
tion to the Bank provided for in this section, there is hereby author- 
ized to be appropriated, without fiscal ye<ar limitation, $450,002,218 
for payment by the Secretary of the Treasury .^^ 

Sec. 28. * * * [Repealed— 1977] '' 

Sec. 29.^*^ (a) The United States Executive Director of the Bank 
shall propose to the Board of Executive Directors of the Bank the 
adoption of a resolution providing (1) that the development and 
utilization of light-capital or intermediate technologies should be ac- 
cepted as major facets of the Bank's development strategy, and (2) 
that such light-capital or intermediate technologies should be devel- 
oped and utilized as soon as possible in all Bank activities. Such reso- 
lution shall further provide that, by the close of the calendar year 
1977, some projects that employ primarily such light-capital or inter- 
mediate technologies shall be designed and approved. 

(b) The United States Governor of the Bank shall report to the 
Congress no later than six months after the date of the enactment of 
this section on the proposal made under subsection (a), and no later 
than twelve months after such date on the progress that has been 
made with respect to such proposal. 



^» Sec. 28, wnicn was aaaea dv j 
the U.S. Executive Director of the Bank to vote against any loan or assistance to any 
country engaging in violations of human rights, was repealed by Sec. 702 of Public 
Law 95-118 (91 Stat. 1070). For new references concerning U.S. activity in the Bank 
and human rights, see Title VII of Public Law 95-118 (page 246). 

20 22 U.S.C. 283z. Sec. 29 was added by Sec. 104 of Public Law 94-302. 



11. International Development Association Act, as amended 

Public Law 86-565 [H.R. 11001], 74 Stat. 293; 22 U.S.C. 284, 283a-284e, 284jf, 
284t, approved June 30, 1960, as amended by Public Law 88-310 [S. 2214], 
78 Stat. 200, approved May 26, 1964; Public Law 91-14 [H.R. 33], 83 Stat. 
10, approved May 23, 1969; Public Law 92-247 [S. 2010], 86 Stat. 60, approved 
March 10, 1972; Public Law 93-373 [S. 2665], 88 Stat. 445, approved Au- 
gust 14, 1974; and by Public Law 95-118 [H.R. 5262], 91 Stat. 1067 at 1068, 
approved October 3, 1977. 

AN ACT To provide for the participation of the United States in the Interna- 
tional Development Association. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, 

SHORT TITLE 

Section 1. This Act may be cited as the "International Develop- 
ment Association Act". 

ACCEPTANCE OF MEMBERSHIP 

Sec. 2. The President is hereby authorized to accept membership 
for the United States in the International Development Association 
(hereinafter referred to as the "Association"), provided for bv the 
Articles of Agreement (hereinafter referred to as the "Articles") of 
the Association deposited in the archives of the International Bank 
for Reconstruction and Development. 

GOVERNOR, EXECUTIVE DIRECTOR, AND ALTERNATES 

Sec. 3. The Governor and Executive Director of the International 
Bank for Reconstruction and Development, and the alternate 
for each of them, appointed under section 3 of the Bretton Woods 
Agreements Act, as amended (22 U.S.C. 286a), shall serve as Gov- 
ernor, Executive Director and alternates, respectively, of the 
Association. 

NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND 
FINANCIAL PROBLEMS 

Sec. 4. The provisions of section 4 of the Bretton Woods Agreements 
Act, as amended (22 U.S.C. 286b), shall apply with respect to 
the Association to the same extent as with respect to the International 
Bank for Reconstruction and Development and the International 
Monetary Fund. Reports with respect to the Association under para- 
graphs (5) and (6) of subsection (b) of section 4 of said Act, as 
amended, shall be included in the first report made thereunder after 
the establishment of the Association and in each succeeding report. 

(231) 



232 

CERTAIN ACTS NOT TO BB TAKEN WITHOUT AUTHORIZATION 

Sec. 5. Unless Congress by law authorizes such action, neither the 
President nor any person or agency shall, on behalf of the United 
States, (a) subscribe to additional funds under article III, section 1, 
of the articles; (b) accept any amendment under article IX of the 
articles; or (c) make a loan or provide other financing to the 
Association. 

DEPOSITORIES 

Sec. 6. Any Federal Reserve bank which is requested to do so by 
the Association shall act as its depository or as its fiscal agent, and 
the Board of Governors of the Federal Eeserve System shall supervise 
and direct the carrying out of these functions by the Federal Reserve 
banks. 

PAYMENT OP SUBSCRIPTIONS 

Sec. 7. (a) There is hereby authorized to be appropriated, with- 
out fiscal year limitation, for the subscription of the United States to 
the Association, $320,290,000.* 

(b)2 The United States Governor is hereby authorized (1) to vote 
for an increase in the resources of the Association and (2) to agree on 
behalf of the United States to contribute to the Association the sum of 
$312 million, both as recommended by the Executive Directors, in a 
report dated September 9, 1963, to the Board of Governors of the 
Association. There is hereby authorized to be appropriated out of 
funds supplied by the Nation's taxpayers or out of funas borrowed on 
their credit, without fiscal year limitation, $312 million to provide the 
United States share of the increase in the resources of the Association. 

(c) ^ For the purpose of keeping to a minimum the cost to the United 
States of participation in the Association, the Secretary of the Treas- 
ury is authorized and directed to issue special notes of the United 
States from time to time, at par, and to deliver such notes to the Asso- 
ciation in exchange for dollars to the extent permitted by the articles. 
The special notes provided for in this subsection shall be issued under 
the authority and subject to the provisions of the Second Liberty Bond 
Act, as amended, and the purposes for which securities may be issued 
under that Act are extended to include the purposes for which special 
notes are authorized and directed to be issued under this subsection, 
but such notes shall bear no interest, shall be nonnegotiable, and shall 
be payable on demand of the Association. The face amount of special 
notes issued to the Association under the authority of this subsection 
and outstanding at any one time shall not exceed in the aggregate, the 
amount actually paid to the Association under the articles. 

1 The United States subscription was payable in five annual installments (see Art. II. Sec. 
2. IDA Articles of Agreement. Vol. III. Sec. H>. one of S7.S.66fi.700 and four of $61.fi5fi.000. 
For the first installment appropriation see Public Law 88-651, approved July 14, 1960. (74 
Stat. 514) : for the second Installment appropriation see Public Law 87-329, approved 
September 30, 1961 (75 Stat. 721) ; and for the third installment appropriation see Pub- 
lic Law 87-872, approved October 23, 1962 (76 Stat. 1168). Title II of the Foreign Aid 
and Related Agencies Appropriation Act 1964. Public Law 88-258 (77 Stat. 862) ap- 
proved January 6, 1964, appropriated $61,656,000 for payment of the fourth installment 
of the United States subscription, to remain available until expended. 

•This subsection was added by section 1 of Public Law 88-310 (78 Stat. 200) approved 
May 26, 1964. 

• The following changes were made In thlg subsection by section 2 of Public Law 88-310 ; 
the subsection was redesignated as "(c)"; the phrase ", after paying the requisite part 
of fhe subscription of the United States in the Association required to be made under the 
articles," which appeared after the word "Treasury" was deleted ; and in the last sentence 
the words "of the subscription of the United States" which preceded the word "actually" 
were deleted. 



233 

(d)* Any payment made to the United States by the Association as 
a distribution of net income shall be covered into the Treasury as a 
miscellaneous receipt. 

JURISDICTION AND VENUE OF ACTIONS 

Sec. 8. For tlic purpose of any action which may be brought 
within the United States, its possessions, or the Commonwealth of 
Puerto Rico, by or against the Association in accordance with the 
articles, the Association shall be deemed to be an inhabitant of the 
Federal judicial district in which its principal office in the United 
States is located, and any such action at law or in equity to which the 
Association sliall be a party shall be deemed to arise under the laws of 
the United States, and the district courts of the United States shall 
have original jurisdiction of any such action. When the Association 
is a defendant in any such action, it may, at any time before the trial 
thereof, remove such action from a State court into tlio district court 
of the United States for the proper district by following the pro- 
cedure for removal of causes otherwise provided by law. 

STATUS, IMMUNITIES, AND PRIVILEGES 

Sec. 9. The provisions of article VII, section 5(d), and article 
VIII, sections 2 to 9, both inclusive, of the articles shall have full force 
and effect in the United States, its possessions, and the Commonwealth 
of Puerto Rico, upon acceptance of membership by the United States 
in, and the establishment of, the Association. 

Sec. 10.'* The United States Governor is hereby authorized (1) to 
vote in favor of the second replenishment resolutions providing for an 
increase in the resources of the Association, and (2) to agree on behalf 
of the United States to contribute to the Association the sum of 
$480,000,000, as recommended by the Executive Directors in a report 
dated INIarch 8, 1968, to the Board of Governors of the Association. 
There is hereby authorized to be appropriated, without fiscal year limi- 
tation, $480,000,000 for payment by the Secretary of the Treasury of 
the United States share of the increase in the resources of the 
Association. 

Sec. 11.^ The United States Governor is hereby authorized to 
agree on behalf of the United States to contribute to the Association 
three annual installments of $320,000,000 each as recommended in the 
"Report of the Executive Directors to the Board of Governors on Ad- 
ditions to IDA Resources: Third Replenishment," dated July 21, 1970. 
There is hereby authorized to be appropriated, without fiscal year lim- 
itation, the amounts necessary for payment by the Secretary of the 
Treasury of three annual installments of $320,000,000 each for the 
United States share of the increase in the resources of the Association. 

Sec. 12.« The President shall instruct the United States Execu- 
tive Directors of the International Bank for Reconstruction and De- 
velopment and the International Development Association to vote 
against any loan or other utilization of the funds of the Bank and the 
Association for the benefit of any country which has — 

* This subsection was redesljrnated "(d)" bv soction 1 of Public I^iw SS-810. 

•"'Sec. 10 was added bv T'nbllc Law 01-14 [IT.R. nni. S3 Stat. 10. nppn.ved Mav 2:i. 1909. 

« Sections 11 through 13 were added by Public Law 92 247. 86 Stat GO. Mar. 10. 1972. 



234 

(1) nationalized or expropriated or seized ownership or con- 
trol of property owned by any United States citizen or by any 
corporation, partnership, or association not less than 50 per centum 
of which is beneficially owned by United States citizens ; 

(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
IS beneficially owned by United States citizens ; or 

(3) imposed or enforced discriminatory taxes or other exac- 
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro- 
priating, or otherwise seizing ownership or control of property 
so owned ; 

unless the President determines that (A) an arrangement for prompt, 
adequate, and effective compensation has been made, (B) the parties 
have submitted the dispute to arbitration under the rules of the Con- 
vention for the Settlement of Investment Disputes, or (C) good faith 
negotiations are in process aimed at providing prompt, adequate, 
and effective compensation under the applicable principles of inter- 
national law. 

Sec. 13.® The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for Reconstruc- 
tion and Development and the International Development Association 
to vote against any loan or other utilization of the funds of the Bank 
and the Association for the benefit of any country with respect to which 
the President has made a determination, and so notified the Secretary 
of the Treasury, that the government of such country has failed to take 
adequate steps to prevent narcotic drugs and other controlled sub- 
stances (as defined oy the Comprehensive Drug Abuse Prevention and 
Control Act of 1970) produced or processed, in whole or in part, in 
such country, or transported through such country, from being sold 
illegally within the jurisdiction of such country to United States Gov- 
ernment personnel or their dependents, or from entering the United 
States unlawfully. Such instruction shall continue in effect until the 
President determines, and so notifies the Secretary of the Treasury, 
that the government of such country has taken adequate steps to 
prevent such sale or entry of narcotic drugs and other controlled 
substances. 

Sec. 14.^ (a) The United States Governor is hereby authorized to 
agree on behalf of the United States to pay to the Association four 
annual installments of $375,000,000 each as the United States con- 
tribution to the Fourth Replenishment of the Resources of the 
Association. 

(b) In order to pay for the United States contribution, there is 
hereby authorized to be appropriated without fiscal year limitation 
four annual installments of $375,000,000 each for payment by the 
Secretary of the Treasury.® 

T Sections 14 and 15 were added by Public Law 03-373, 88 Stat. 445, approved Auiniit 
14, 1974. 

8 Supplemental Appropriations Act, 1977 states : 

"For payment by the Secretary of the Treasury of the remaining portion of the first 
installment of the United States contribution to the fourth replenishment of the resources 
of the International Development Association, as authorized by the International Develop- 
ment Association Act of August 14, 1974 (Public Law 93-373), .$55,000,000, to remain 
available until expended." 



235 

Sec. 15. * * * [Ropoalod— 1077J " 

Sec. 16.^'' (a) The Ignited States Governor is hereby authorized to 
agree on behalf of the United States to pay to the Association 
$2,400,000,000 as the United States contribution to the fifth replenish- 
ment of the Kesources of the Association: Provided^ however^ That 
any commitment to make such contributions shall be made subject to 
obtaining the necessary appropriations. 

(b) In order to pay for the United States contribution provided 
for in this section, there are hereby authorized to be ai)propriated, 
without fiscal year limitation, $2,400,000,000 for payment by the 
Secretary of the Treasury. ^^ 



•Sec. 15. which directed the U.S. Governor to vote against any loan or assistance to any 
country which develops a nuclear explosive device (unless such country was a party to 
the Treat V on the Non-Proliferation of Nuclear Weapons), was repealed hy Sec. 702 of 
Public Law J>r)-llS (1>1 Stat. 1(»70). 

JO Sec. 1«; was added by Sec. 401 of Public Law 95-118 (91 Stat. 1068). 

" The Foreign Assistance Appropriations Act. 1978 states : 

"For payment to the International Development Association by the Secretary of t!>e 
Treasury for the first installment of the United States contribution to the fifth replenish- 
ment : if800.000.000 to remain available until expended : Provided, That no such payment 
may be made while the United States Executive Director to the International Bank for 
Reconstruction and Development is compensated by the Bank at a rate in excess of the 
rate provided for an individual occupying a position at level IV of the Executive Schedule 
under section 5.'il5 of title 5 United States Code, or while the alternate United States 
Executive Director to the Bank is compensated by the Bank at a rate in excess of the 
rate provided for an individual occupving a position at level V of the Executive Schedule 
under section 5.'?ir» of title 5, United States Code." 

This Act also expresses the sense of the Senate that the U.S. share of contributions to 
future replenishments of the Association should not exceed 25 percent. 



12. Asian Development Bank Act, as amended ^ 

Public Law 89-369 [H.R. 12563], 80 Stat. 71, approved March 16, 1966, as amended 
by Public Law 92-245 [S. 749], 86 Stat. 57, approved March 10, 1972, and by 
Public Law 93-189 [S. 1443], 87 Stat. 714 at 732, approved December 17, 1973'; 
Public Law 93-537 [S. 2193], 88 Stat. 1735, approved December 22, 1974; and 
by Public Law 95-118 [H.R. 5262], 91 Stat. 1067 at 1068, approved October 3, 
1977 

AN ACT To provide for the participation of the United States in the Asian 

Development Bank. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That tliis Act may 
be cited as the "Asian Development Bank Act". 

ACCEPTANCE OP MEMBERSHIP 

Section 2. The President is hereby authorized to accept membership 
for the United States in the Asian Development Bank (hereinafter 
referred to as the "Bank") provided for by the agreement establish- 
ing the Bank (hereinafter referred to as the "agreement") deposited 
in the archives of the United Nations. 

Sec. 3. (a) The President, by and with the advice and consent of 
the Senate, shall appoint a Governor of the Bank, an alternate for the 
Governor, and a Director of the Bank. 

(b) No person shall be entitled to receive any salary or other com- 
pensation from the United States for services as a Governor or Alter- 
nate Governor. The Director may, in the discretion of the President, 
receive such compensation, allowances, and other benefits as, together 
with those received by him from the Bank, will equal those authorized 
for a Chief of Mission, class 2, within the meaning of the Foreign 
Service Act of 1946, as amended. 

Sec. 4. (a) The policies and operations of the representatives of 
the United States on the Bank shall be coordinated with other United 
States policies in such manner as the President shall direct. 

(b) An annual report with respect to United States participation 
in the Bank shall be submitted to the Congress by such agency or 
officer as the President shall designate. 

Sec. 5. Unless the Congress by law authorizes such action, neither 
the President nor any person or agency shall, on behalf of the United 
States, (a) subscribe to additional shares of stock of the Bank; (b) 
vote for or agree to any amendment of the agreement which increases 
the obligations of the United States, or whicn would change the pur- 
pose or functions of the Bank; or (c) make a loan or provide other 
financing to the Bank, except that funds for technical assistance not 
to exceed $1,000,000 in any one year may be provided to the Bank 
by a United States agency created pursuant to an Act of Congress 

1 22 U.S.C. 285-285t. 

(236) 



237 

which is autliorizod by law to provide funds to international 
organizations. 

DEPOSITORIES 

Sec. 6. Any Federal Reserve bank which is requested to do so by 
the Bank shall act as its depository or as its fiscal agent, and the 
Board of Governors of the Federal Reserve System shall supervise 
and direct the carrying out of these functions by the Federal Reserve 
banks. 

PAYIVIENT OF SUBSCRIPTIONS 

Sec. 7. (a) There is hereby authorized to be appropriated, without 
fiscal year limitation, for the purchase of twenty thousand shares of 
capital stock of the Bank, $200,000,000. 

(b) Any payment made to the United States by the Bank as a dis- 
tribution of net income shall be covered into the Treasury as a miscel- 
laneous receipt. 

JURISDICTION AND VENUE OF ACTIONS 

Sec. 8. For the purpose of any civil action which may be brought 
within the United States, its territories or possessions, or the Common- 
wealth of Puerto Rico, by or against the Bank in accordance with the 
agreement, the Bank shall be deemed to be an inhabitant of the 
Federal judicial district in which its principal office or agency in the 
United States is located, and any such action to which the Bank shall 
be a party shall be deemed to arise under the laws of the United States, 
and the district courts of the United States, including the courts enu- 
merated in title 28, section 460, United States Code, shall have original 
jurisdiction of any such action. When the Bank is defendant in any 
action in a State court, it may, at any time before the trial thereof, 
remove such action into the direct court of the United States for the 
proper district by following the procedure for removal of causes other- 
wise provided by law. 

STATUS, IMMUNITIES, AND PRIVILEGES 

Sec. 9. The agreement, and particularly articles 49 through 56, shall 
have full force and effect in the United States, its territories and pos- 
sessions, and the Commonwealth of Puerto Rico, upon acceptance of 
membership by the United States in. and the establishment of, the 
Bank. The President, at the time or deposit of the instrument of 
acceptance of membership by the United States in the Bank, shall 
also deposit a declaration that the United States retains for itself and 
its political subdivisions the right to tax salaries and emoluments paid 
by the Bank to its citizens or nationals. 

SECURITIES ISSUED BY BANK AS INVESTMENT SECURITIES FOR NATIONAL 

BANKS 

Sec. 10. The last sentence of paragraph 7 of section 5136 of the 
Revised Statutes, as amended (12 U.S.C. 24), is amended by striking 
the word "or" after the words "International Bank for Reconstruction 
and Development" and inserting a comma in lieu thereof, and by in- 



238 

serting after the words "the Inter- American Development Bank" the 
words "or the Asian Development Bank". 

SECURITIES ISSUED BY BANK AS EXEMPT SECURITIES ; REPORT FILED WITH 
SECURITIES AND EXCHANGE COMMISSION 

Sec. 11. (a) Any securities issued by the Bank (including any guar- 
antee by the Bank, whether or not limited in scope) in connection with 
raising of funds for inclusion in the Bank's ordinary capital resources 
as defined in article 7 of the a^eement and any securities guaranteed 
by the Bank as to both principal and interest to which the commit- 
ment in article 6, section 6, of the agreement is expressly applicable, 
shall be deemed to be exempted securities within the meaning of para- 
graph (a) (2) of section 3 of the Act of May 27, 1933, as amended (15 
U.S.C. 77c), and paragraph (a) (12) of section 3 of the Act of 
June 6, 1934, as amended (15 U.S.C. 78c). The Bank shall file with the 
Securities and Exchange Commission such annual and other reports 
with regard to such securities as the Commission shall determine to be 
appropriate in view of the special character of the Bank and its opera- 
tions and necessary in the public interest or for the protection of 
investors. 

(b) The Securities and Exchange Commission, acting in consulta- 
tion with such agency or officer as the President shall designate, is 
authorized to suspend the provisions of subsection (a) at any time as 
to any or all securities issued or guaranteed by the Bank during the 
period of sucli suspension. The Commission shall include in its annual 
reports to Congress such information as it shall deem advisable with 
regard to the operations and effect of this section and in connection 
therewith shall include any views submitted for such purpose by any 
association of dealers registered with the Commission. 

Sec. 12.2 (a) Subject to the provisions of this Act, the United States 
Governor of the Bank is authorized to enter into an agreement with 
the Bank providing for a United States contribution of $100,000,000 
to the Bank in two annual installments of $60,000,000 and $40,000,000, 
beginning in fiscal year 1972. This contribution is referred to herein- 
after in this Act as the "United States Special Resources". 

(b) The United States Special Resources shall be made available 
to the Bank pursuant to the provisions of this Act and article 19 of 
the Articles of Agreement of the Bank, and in a manner consistent 
with the Bank's Special Funds Rules and Regulations. 

Sec. 13.2 (a) q-]^g United States Special Resources shall be used 
to finance specific high priority development projects and programs 
in developing member countries of the Bank with emphasis on such 
projects and programs in the Southeast Asia region. 

(b) The United States Special Resources shall be used by the Bank 
only for — 

(1) making development loans on terms which may be more 
flexible and bear less heavily on the balance of payments than 
those established by the Bank for its ordinary operations: and 

(2) providing technical assistance credits on a reimbursable 
basis. 



» Section 12 through 19 were added by Public Law 92-245, 86 Stat. 59, approved March 
10. 1972. 



239 

(c)(1) The TTnitod States Special Resources may be expended by 
the Bank only for procurement in the Ignited States of p^oods pro- 
duced in, or services supplied from, the United States, except that 
the TTnited States Governor, in consultation with tlie National Ad- 
visory Council on International Monetary and Financial Policies, may 
allow eligibility for procurement in other member countries from the 
United States Special Resources if he determines that such procure- 
ment elifi^ibility would materially improve the ability of the Bank to 
carry out the objectives of its special funds resources and would be 
compatible with the international financial position of the United 
States. 

(2) The United States Special Resources may be used to pay for 
administrative expenses arising from the use of the United States 
Special Resources, but only to the extent such expenses are not covered 
from the Bank's service fee or income from use of United States Spe- 
cial Resources. 

(d) All financing of programs and projects by the Bank from the 
United States Special Resources shall be repayable to the Bank by the 
borrowers in United States dollars. 

Sec. 14.2 (j^) ^\^Q lettei-s of credit provided for in section 15 shall 
be issued to the Bank only to the extent that at the time of issuance 
the cumulative amount of the United States Special Resources pro- 
vided to the Bank (A) constitute a minority of all special funds con- 
tributions to the Bank, and (B) are no greater than the largest cu- 
mulative contribution of any other single country contributing to 
the special funds of the Bank. 

(b) The United States Governor of the Bank shall give due regard 
to the principles of (A) utilizing all special funds resources on an 
equitable basis, and (B) significantly shared participation by other 
contributors in each special fund to which United States Special Re- 
sources are provided. 

Sec. 15.2 The United States Special Resources will be provided to 
the Bank in the form of a nonnegotiable, noninterest-bearing, letter of 
credit which shall be payable to the Bank at par value on demand to 
meet the cost of eligible goods and services, and administrative costs 
authorized pursuant to section 13(c) of this Act. 

Sec. 16.2 The United States shall have the right to withdraw all or 
part of the United States Special Resources and any accrued resources 
derived therefrom under the procedures provided for in section 8.03 of 
the Special Funds Rules and Regulations of the Bank. 

Sec. 17.2 For the purpose of providing United States Special 
Resources to the Bank there is hereby authorized to be appropriated 
$100,000,000 ^ all of which shall remain available until expended. 

Sec. 18.2 The President shall instruct the United States Executive 
Director of the Asian Development Bank to vote against any loan or 
other utilization of the funds of the Bank for the benefit of any coun- 
try which has — 

(1) nationalized or expropriated or seized ownership or con- 
trol of property owned by any United States citizen or by any 
corporation, partnership, or association not less than 50 per 
centum of which is beneficially owned by United States citizens; 

•Sec. 28 of Public Law 93-189 (87 Stat. 732) struck out 160,000.000 for flacal year 
1972 and $40,000,000 for fiscal year 1973 an(? inserted $100,000,000. 



240 

(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
is beneficially owned by United States citizens ; or 

(3) imposed or enforced discriminatory taxes or other exac- 
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro- 
priating, or otherwise seizing ownership or control of property 
so owned ; 

unless the President determines that (A) an arrangement for prompt, 
adequate, and effective compensation has been made, (B) the parties 
have submitted the dispute to arbitration under the rules of the Con- 
vention for the Settlement of Investment Disputes, or (C) good faith 
negotiations are in progress aimed at providing prompt, adequate, and 
effective compensation under the applicable prmciples of international 
law. 

Sec. 19.2 The Secretary of the Treasury shall instruct the United 
States Executive Director of the Asian Development Bank to vote 
against any loan or other utilization of the funds of the Bank for the 
benefit of any country with respect to which the President has made a 
determination, and so notified the Secretary of the Treasury, that the 
government of such country has failed to take adequate steps to pre- 
vent narcotic drugs and other controlled substances (as defined by the 
Comprehensive Drug Abuse Prevention and Control Act of 1970) 
produced or processed, in whole or in part, in such country, or trans- 
ported through such country, from being sold illegally within the 
jurisdiction of such country to United States Government personnel 
or their dependents, or from entering the United States unlawfully. 
Such instruction shall continue in effect until the President deter- 
mines, and so notifies the Secretary of the Treasury, that the govern- 
ment of such country has taken adequate steps to prevent such sale 
or entry of narcotic drugs and other controlled substances. 

Sec. 20.* (a) The United States Governor of the Bank is authorized 
to subscribe on behalf of the United States to thirty thousand addi- 
tional shares of the capital stock of the Bank in accordance with and 
subject to the terms and conditions of Resolution Numbered 46 adopted 
by the Bank's Board of Governors on November 30, 1971. 

(b) In order to pay for the increase in the United States subscrip- 
tion to the Bank provided for in this section, there is hereby author- 
ized to be appropriated without fiscal year limitation $361,904,726 for 
payment by the Secretary of the Treasury.^ 

Sec. 21. (a)* The United States Governor of the Bank is hereby 
authorized to agree to contribute on behalf of the United States $50,- 
000,000 to the special funds of the Bank. This contribution shall be 
made available to the Bank pursuant to the provisions of article 19 
of the articles of agreement of the Bank. 

(b) In order to pay for the United States contribution to the 
special funds, there is hereby authorized to be appropriated without 

* Sections 20 and 21 were added by Public Law 93-537, 88 Stat. 1735, approved Decem- 
ber 22. 1974. 

6 The Foreign Assistance Appropriations Act, 1977 provided $90,477,000, to remain 
available until expended, for payment of the third and final Installment by the U.S. of 
the subscription. 



241 

fiscal year limitation $50,000,000 for payment by the Secretary of the 
Treasury.'^ 

Sec. 22." (a) The United States Governor of the Bank is author- 
ized to subscribe on behalf of the IJnied States to sixty-seven tliousand 
and five hundred additional shares of the capital stock of tlie Bank; 
Provided^ hoicerer, That any subscription to additional shares shall be 
made only after the amount required for such subscription has been 
appropriated. 

(b) In order to pay for the increase in the United States sub- 
scription to the Bank provided for in this section, there arc hereby 
authorized to be appropriated without fiscal year limitation $814,- 
28(),250 for payment by the Secretary of the Treasury.^ 

Sec. 23.^ (a) The United States Governor of the Bank is hereby 
authorized to contribute on behalf of the United States $180,000,000 
to the Asian Development Fund, a special fund of the Bank: Pro- 
vided^ howerei\ That any connnitment to make such contribution 
shall be made subject to obtainincr the necessary appropriations. 

(b) In order to pay for the United States contribution to the Asian 
Development Fund provided for in this section, there are hereby 
authorized to be appropriated without fiscal year limitation 
$180,000,000 for payment by the Secretary of the Treasury.^ 



•The Supplemental Appropriations Act. 1977 (91 Stat. 67) provided .$2.5.000.000, to 
liable until expended, for pa.\ 
mobilization of the Asian Development Fund. 



remain available until expended, for payment of the U.S. share of the initial resource 



7 Sections 22 and 23 were added by Sec. 501 of Public Law 95-118 (91 Stat. 10G8). 

•* The Foreign Assistance Appropriations Act. 1978 states : 

"For payment to the Asian Development IJank by the Secretary of the Treasury of the 
first installment of (1) the United States share of the increase in subscriptions to the 
(a) paid-in capital stock, and (b) callable capital stock, and (2) the United States con- 
tribution to the increase in resources of the Asian Development Fund .$217,500,000. to 
remain available until exi)ended : Provided, That no such payment may be made while the 
United States Director to the Hank is compensated by the Bank at a rate which, together 
with whatever compensation such Director receives from the United States, is in excess 
of the rate provided for an individual occupying a position at level IV of the Executive 
Schedule under section .").31.") of title 5. L'nited States Code, or while any alternate United 
States Director to the Bank is compensated by the Bank in excess of the rate provided 
for an individual occupying a position at level V of the F^xecutive Schedule under section 
5316 of title 5. United States Code." 

This Act also expresses the sense of the Senate that the L'.S. share of contributions to 
future replenishments of the Bank should not excee<l 16.3% of the paid-in capital or 
callable capital, and 22.2% of the Asian Development Fund. 



13. African Development Fund Act, as amended 

Partial text of Public Law 94-302 [H.R. 9721], 90 Stat. 591, approved May 31, 1976, 
as amended by Public Law 95-118 [H.R. 5262], 91 Stat. 1067 at 1069, approved 
October 3, 1977 

AN ACT To provide for increased participation by the United States in the 
Inter- American Development Bank, to provide for the entry of non regional 
members and the Bahamas and Guyana in the Inter-American Development 
Bank, to provide for the participation of the United States in the African 
Development Fund, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 



TITLE II— AFRICAN DEVELOPMENT FUND 

Sec. 201.1 This Title may be cited as the "African Development 
Fund Act". 

Sec. 202.2 The President is hereby authorized to accept participa- 
tion for the United States in the African Development Fund (here- 
inafter referred to as the "Fund") provided for by the agreement 
establishing the Fund (hereinafter referred to as the "agreement") 
deposited in the Archives of the United Nations. 

Sec. 203.^ (a) The President, by and with the advice and consent 
of the Senate, shall appoint a Governor, and an Alternate Governor, 
of the Fund. 

(b) The Governor, or in his absence the Alternate Governor, on 
the instructions of the President, shall cast the votes of the United 
States for the Director to represent the United States in the Fund. 
The Director representing the United States and his Alternate, if 
they are citizens of the United States, may, in the discretion of the 
President, receive such compensation, allowances, and other benefits 
not exceeding those authorized for a Chief of Mission, class 2, within 
the meaning of the Foreign Service Act of 1946, as amended.* 

Sec. 204.^ The provisions of section 4 of the Bretton "Woods Agree- 
ments Act, as amended (22 U.S.C. 286b), ^ shall apply with respect to 
the Fund to the same extent as with respect to the International Bank 
for Reconstruction and Development and the International Monetary 
Fund. Reports with respect to the Fund under paragraphs (5) and 
(6) of subsection 4 of said Act, as amended, shall be included in the 
first report made thereunder after the United States accepts partici- 
pation in the Fund. 



122 U.S.C 290g note. 
3 22 U.S.C. 290g. 
«22 U.S.C. 290g-l. 
* For text, see p. 504. 
"22 U.S.C. 290g-2. 
« For text, see page 197. 



(242) 



243 

Sec. 205.' Unless Congress by hiw authorizes such action, neither 
the President nor any person or agency shall, on beiialf of the United 
States : 

(a) agree to an increase in the subscription of the United States 
to the P'und ; 

(b) vote for or agree to any amendment of the agreement which 
increases the obligations of the United States, or which would 
change the purpose of functions of the Fund ; or 

(c) make a loan or provide other financing to the Fund, except 
that funds for technical assistance may be provided to the Fund 
by a United States agency created pursuant to an Act of Congress 
which is authorized by law to provide funds to international 
organizations. 

Sec. 2()(>.^ (a) There is hereby authorized to be appropriated witli- 
out fiscal year limitation, as the United States subscription, $25,000,000 
to be paid by the Secretary of the Treasury to the Fund in three annual 
installments of $9,000,000, $8,000,000, and $8,000,000.'-' 

(b) Any repayment or distribution of moneys from the Fund to 
the United States shall be covered into the Treasury as a miscellaneous 
receipt. 

Sec. 207.^° Any Federal Reserve bank which is requested to do so by 
the President shall act as a depository for the Fund, and the Board 
of Governors of the Federal Reserve System shall supervise and 
direct the carrying out of these functions by the Federal Reserve banks. 

Sec. 208.^^ For the purpose of any civil action which may be brought 
within the United States, its territories or possessions, or the Common- 
wealth of Puerto Rico, by or against the Fund in accordance with the 
agreement, the Fund shall be deemed to be an inhabitant of the Fed- 
eral judicial district in which its principal office or agency appointed 
for the purpose of accepting service or notice of service is located, and 
any such action to which the Fund shall be party shall be deemed to 
arise under the laws of the United States, and the district courts of 
the United States (including the courts enumerated in title 28, section 
460, United States Code) shall have original jurisdiction of any such 
action. When the Fund is defendant in any action in a State court, 
it may, at any time before the trial thereof, remove such action into 
the district court of the United States for the proper district by 
following the procedure for removal of causes otherwise provided by 
law. 

Sec. 200.1- 'pj^g agreement, including without limitation articles 41 
through 50, shall have full force and effect in the United States, its 
territories and possessions, and the Commonwealth of Puerto Rico, 
upon the acceptance of participation by the United States in, and the 
entry into force of, the Fund. The President, at the time of deposit 
of the instrument of acceptance of participation of the United States 

' 22 U.S.C. 290R-3. 

8 22 U.S.C. 290R-4. 

» Foreign Assistance Appropriations Act, 1978 states : 

"For payment by the Secretary of the Treasury for the final Installment of the Initial 
United States contribution to the African Development Fund as authorized by the Act 
of May 31. 1976 (Public I^w 94-.302). $10,000,000. to remain available until expended." 

This Act also expresses the sense of the Senate that the U.S. share of contributions to 
future replenishments of the Bank should not exceed I0.69?r for the Special Fund. 

^"22 U.S.C. 290g-o. 

1122 U.S.C. 290g-6. 

" 22 U.S.C. 290g-7. 



244 

in the Fund, shall also deposit a declaration that the United States 
retains for itself and its political subdivisions the right to tax salaries 
and emoluments paid by the Fund to its citizens or nationals and may 
deposit a declaration providing for reservations on other matters set 
forth in article 58. 

Sec. 210.^^ The President shall instruct the United States Governor 
of the Fund to cause the Executive Director representing the United 
States in the Fund to cast the votes of the United States against any 
loan or other utilization of the funds of the Fund for the benefit of 
any country which has — 

( 1 ) nationalized or expropriated or seized ownership or control 
of property owned by any United States citizen or by any corpora- 
tion, partnership, or association not less than 50 per centum of 
which is beneficially owned by United States citizens ; 

(2) taken steps to repudiate or nullify existing contracts or 
agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum of which 
is beneficially owned by United States citizens ; or 

(3) imposed or enforced discriminatory taxes or other exac- 
tions, or restrictive maintenance or operational conditions, or has 
taken other actions, which have the effect of nationalizing, expro- 
priating, or otherwise seizing ownership or control of property 
so owned ; 

unless the President determines that (A) an arrangement for ])rompt, 
adequate, and effective compensation has been made, (B) the parties 
have submitted the dispute to arbitration under the rules of the Con- 
vention for the Settlement of Investment Disputes,^* or (C) good faith 
negotiations are in progress aimed at providing prompt, adequate, and 
effective compensation under the applicable principles of international 
law. 

Sec. 211. * * * [Repealed— 1977] '' 

Sec. 212.^*^ (a) The United States Governor is hereby authorized to 
contribute on behalf of the United States $50,000,000 to the African 
Development Fund, which would represent an additional United 
States contribution to the first replenishment. The Secretary of the 
Treasury is directed to begin discuSvSions with other donor nations to 
the African Development Fund for the purpose of setting amounts 
and of reviewing and possibly changing the voting structure within 
the Fund: Provided^ hoiveve?', That any commitment to make such 
contribution shall be made subject to obtaining the necessary 
appropriations. 

(b) In order to pay for the United States contribution to the 
African Development Fund provided for in this section there are 
authorized to be appropriated Avithout fiscal year limitation 
$50,000,000 for payment by the Secretary of the Treasury. 



i»22 U.S.C. 290{!:-8. 

1* For text see Vol. HI, Sec. H. 

i'"' Sec. 211. which directed the U.S. Governor of the Fund to vote against any loans or 
assistance to anv conntrv enffapinfr in violations of human riprhts. was repealed by Sec. 
702 of Public Law Oo-llS (01 Stat. 1070). For new references to the African Develop- 
ment Fund and human riffhts. see Title VII of Public Law 95-118 (pa«e 246). 

i«22 U.S.C. 290ff-10. Sec. 212 was added bv Sec. 601 of Public Law 95-ll.S (1>1 Stat. 
1069). 



14. International Financial Institutions 

Partial text of Public Law 95-118 [H.R. 5262], 91 Stat. 1067, approved 
October 3, 1977 ' 



XoTE. — Except for the provisions noted below, tliis Act con- 
sists of amendments to the Bretton Woods A<rreements Act, In- 
ternational Finance Corporation Act, International Development 
Association Act, Asian Development Bank Act, African Devel- 
opment Fund xVct, and the Inter-American Development Bank 
Act. 



AX ACT To provide for increased participation by the United States in the Inter- 
national Bank for Reconstruction and Development, the International Devel- 
opment Association, the International Finance Cori)oration. the Asian Devel- 
opment Bank and the Asian Development Fund, and for other purposes. 

Be It enacted by the Senate and House of Representatives of the 
United States of America in Congress assemhled^ 

TITLE I— PURPOSE AXD POLICY; DECLARATION OF 
COXGRESSIOXAL IN TEXT IX RESPECT TO CONTINUED 
PARTICIPATION OF THE UNITED STATES GOVERN- 
MENT IN INTERNATIONAL FINANCIAL INSTITUTIONS 
FOSTERING ECONOMIC DEVELOPMENT IN LESS 
DEVELOPED COUNTRIES 

Sec. 101. (a) It is the sense of the Congress that — 

(1) for liumanitarian, economic, and political reasons, it is in 
the national interest of the United States to assist in fostering 
economic development in the less developed countries of this 
world ; 

(2) the development-oriented international financial institu- 
tions have proved themselves capable of playing a significant role 
in assisting economic development by providing to less developed 
countries access to capital and technical assistance and soliciting 
from them maximum self-help and mutual cooperation; 

(3) this has been achieved with minimal risk of financial loss 
to contributing countries; 

(4) such institutions have proved to be an effective mechanism 
for sharing tlie burden among developed countries of stimulating 
economic development in the less developed world; and 

(5) altliough continued Ignited States participation in the 
international financinl institutions is an important part of efforts 



22 U.S.C. 262c-262p. 

(245) 



246 

by the United States to assist less developed countries, more of 
this burden should be shared by other developed countries. As a 
step in that direction, in future negotiations, the United States 
should work toward aggregate contributions to future replenish- 
ments to international financial institutions covered by this Act 
not to exceed 25 per centum, 
(b) The Congress recognizes that economic development is a long- 
term process needing funding commitments to international financial 
institutions. It also notes that the availability of funds for the United 
States contribution to international financial institutions is subject to 
the appropriations process. 



TITLE VII— HUMAN RIGHTS 

Sec. 701.2 (j^^ j}jg United States Government, in connection with 
its voice and vote in the International Bank for Eeconstruction and 
Development, the International Development Association, the Inter- 
national Finance Corporation, the Inter-American Development 
Bank, the African Development Fund, and the Asian Development 
Bank, shall advance the cause of human rights, including by seeking 
to channel assistance toward countries other than those whose govern- 
ments engage in — 

(1) a consistent pattern of gross violations of internationally 
recognized human rights, such as torture or cruel, inhumane, 
or degrading treatment or punishment, prolonged detention with- 
out charges, or other flagrant denial to life, liberty, and the secu- 
rity of person ; or 

(2) provide refuge to individuals committing acts of interna- 
tional terrorism by hijacking aircraft. 

(b) Further, the Secretary of the Treasury shall instruct each 
Executive Director of the above institutions to consider in carrying 
out his duties: 

(1) specific actions by either the executive branch or the Con- 
gress as a whole on individual bilateral assistance programs be- 
cause of human rights considerations ; 

(2) the extent to which the economic assistance provided by 
the above institutions directly benefit the needy people in the 
recipient country; 

(3) w^hether the recipient country has detonated a nuclear de- 
vice or is not a State Party to the Treaty on Nonproliferation 
of Nuclear Weapons or both : and 

(4) in relation to assistance for the Socialist Republic of Viet- 
nam, the People's Democratic Republic of Laos, and Democratic 
Kampuchea (Cambodia), the responsiveness of the governments 
of such countries in providing a more substantial accounting of 
Americans missing in action. 

(c) The Secretaries of State and Treasury shall report annually to 
the Speaker of the House of Representative's and the President of the 



2 22 U.S.C. 262g. 



247 

Senate on the proofress toward achieving the goals of this title, includ- 
ing the listing required in subsection (d) . 

(d) The United States Government, in connection with its voice and 
vote in the institutions listed in subsection (a), shall seek to channel 
assistance to projects which address basic human needs of the people of 
the recipient country. The annual report required under subsection (c) 
shall include a listing of categories of such assistance granted, with 
particular attention to categories that address basic human needs. 

(e) In determining whether a country is in gross violation of 
internationally recognized human rights standards, as defined by the 
provisions of subsection (a), the United States Government shall give 
consideration to the extent of cooperation of such country in permit- 
ting an unimpeded investigation of alleged A'iolations of interna- 
tionally recognized human rights by appropriate international orga- 
nizations including, but not limited to. the International Committee of 
the Red Cross. Amnesty International, the International Commission 
of Jurists, and groups or persons acting under the authority of the 
United Nations or the Orgfanization of American States. 

(f ) The United States Executive Directors of the institutions listed 
in subsection (a) are authorized and instructed to oppose any loan, 
any extension of financial assistance, or any technical assistance to 
any country described in subsection (a) (1) or (2), unless such assist- 
ance is directed specifically to programs which serve the basic human 
needs of the citizens of such country.^ 

Sec. 702. Section 28 of the Inter- American Development Bank Act, 
as amended (22 U.S.C. 283y), section 211 of the Act of May 81, 1976 
(22 U.S.C. 290g-9), and section 15 of the International Development 
Association Act, as amended (22 I^.S.C. 284m) , are repealed. 

Sec. 703.^ (a) The Secretary of State and the Secretary of the 
Treasury shall initiate a wide consultation designed to develop a viable 
standard for the meeting of basic human needs and the protection of 
human rights and a mechanism for acting together to insure that the 
rewards of international economic cooperation are especially avail- 
able to those who subscribe to such standards and are seen to be moving 
toward making them effective in their own systems of governance. 

(b) Not later than one year after the date of enactment of this Act, 
the Secretary of State and the Secretary of the Treasury shall report 
to the President of the Senate and the Speaker of the House of Repre- 
sentatives on the progress made in carrying out this section. 

Sec. 704. The President shall direct the United States Executive 
Directors of such international financial institutions to take all appro- 
priate actions to keep the salaries and benefits of the employees of 
such institutions to levels comparable to salaries and benefits of 
employees of private business and the Ignited States Government in 
comparable positions. 

TITLE VIII— LIGHT CAPITAL TECHNOLOGY 

Sec. 801. (a) The United States Government, in connection with 
its voice and vote in the International Bank for Reconstruction and 



^ Sep also Spc. HOT of thp Foreign Aisssistancf Appropriations Act. 1978 (pajrp 216) for 
a fnrtlior stafpnipnt rpjrardlnp human rights and Intprnational financial institutions. 
*22 U.S.C. 262c note. 



248 

Development, the International Development Association, the Inter- 
national Finance Corporation, the Inter-American Development 
Bank, the African Development Fund, and the Asian Development 
Bank, shall promote the development and utilization of light capital 
technologies, otherwise known as intermediate, appropriate, or village 
technologies, by such international institutions as major facets of their 
development strategies, with major emphasis on the production and 
conservation of energy through light capital technologies. 

(b) The Secretary of the Treasury shall report to the Congress 
not later than six months after the date of enactment of this section 
and annually thereafter on the progress toward achieving the goals 
of this title. Each report shall include a separate and comprehensive 
discussion, with examples of specific projects and policies, of each 
institution's activity in light capital technologies and of United States 
efforts to carry out subsection (a) with respect to each institution. 

TITLE IX— HUMAN NUTRITION IN DEVELOPING 

COUNTRIES 

Sec. 901. (a) The Congress declares it to be the policy of the United 
States, in connection with its voice and vote in the International 
Bank for Reconstruction and Development, the International Devel- 
opment Association, the International Finance Corporation, the Inter- 
American Development Bank, the African Development Fund, the 
Asian Development Fund, and the Asian Development Bank, to com- 
bat hunger and malnutrition and to encourage economic development 
in the developing countries, with emphasis on assistance to those 
countries that are determined to improve their own agricultural pro- 
duction, by seeking to channel assistance for agriculturally related 
development to projects that would aid in fulfilling domestic food 
and nutrition needs and in alleviating hunger and malnutrition in the 
recipient country. The United States representatives to the institu- 
tions named in this section shall oppose any loan or other financial 
assistance for establishing or expanding production for export of palm 
oil, sugar, or citrus crops if such loan or assistance will cause injury to 
United States producers of the same, similar, or competing agricul- 
tural commodity. 

(b) The Secretaries of State and Treasury shall report annually to 
the Speaker of the House of Representatives and the President of the 
Senate on the progress towards achieving the goals of this title. 

TITLE X— EFFECTIVE DATE 

Sec. 1001.^ This Act shall take effect on the date of its enactment, 
except that no funds authorized to be appropriated by any amendment 
contained in title II, III, IV, V, or VI may be available for use or 
obligation prior to October 1, 1977. 



= 22 U.S.C. 2821 note. 



15. Convention on the Settlement of Investment 
Disputes Act of 1966 

Public Law 89-532 [S. 3498], 80 Stat. 344, approved August 11, 1966 

AN ACT To facilititate the carrying out of the obligations of the United States 
under the Convention of the Settlement of Investment Disputes Between 
States and Nationals of Other States, signed on August 27, 1965, and for other 

purposes. 

Be is enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, That this Act may 
be cited as the "Convention on the Settlement of Investment Disputes 
Act of 1966". 

Sec. 2.^ The President may make such appointments of representa- 
tives and panel members as may be provided for under the convention. 

Sec. 3.^ (a) An award of an arbitral tribunal rendered pursuant 
to chapter IV of the convention shall create a right arising under a 
treaty of the United States. The pecuniary obligations imposed by 
such an award shall be enforced and shall be given the same full 
faith and credit as if the award were a final judgment of a court of 
general jurisdiction of one of the several States. The Federal Arbi- 
tration Act (9 U.S.C. 1 et seq.) shall not apply to enforcement of 
awards rendered pursuant to the convention. 

(b) The district courts of the United States (including the courts 
enumerated in title 28, United States Code, section 460) shall have 
exclusive jurisdiction over actions and proceedings under paragraph 
(a) of this section, regardless of the amount in controversy. 



122 U.S.C. 1650. 
»22 U.S.C. 1650a 



(249) 



20-594 O - 78 - 17 



I. ENERGY AND NATURAL RESOURCES 

CONTENTS 

Page 

1. Atomic Energy and Related Materials 253 

a. Atomic Energy Act of 1954, as amended (Public Law 83-703) 

(partial text) 253 

h. EURATOM Cooperation Act of 1958, as amended (Public Law 

85-846) 277 

c. EURATOM Resolution (S. Con. Res. 116, 85th Congress) 281 

d. International Atomic Energy Agency Participation Act of 1957, 

as amended (Public Law 85-177) ^_-_ 282 

e. Executive Orders Concerning International Atomic Energy 

Cooperation 286 

(1) Executive Order 11057 286 

(2) Executive Order 10899 287 

(3) Executive Order 1 084 1 , as amended 288 

2. Energy Policy and Conservation Act (Public Law 94-163) (partial 

text) 290 

3. Defense Production Act Amendments of 1975, as amended (Public 

Law 94-152) (partial text) 307 

4. Negotiations With Canada Concerning the Alaska Pipeline (Public 

Law 93-153) (partial text) 312 



(251) 



1. Atomic Energy Act and Related Materials 

a. Atomic Energy Act of 1954 as amended 

Partial text of Public Law 83-703 [H.R. 9757], 68 Stat. 919, approved 
August 30, 1954 ' 

AN ACT To amend the Atomic Energy Act of 1946, as amended, and for other 

purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That the Atomic 
Energy Act of 1946, as amended, is amended to read as follows : 

"ATOMIC ENERGY ACT OF 1954 



XoTE. — The Energy Reorganization Act of 1974 (Public Law 
93-438, 88 Stat. 1233, approved October 11, 1974; 42 U.S.C. 
5801-5891) repealed Sections 21 and 22 abolishing the Atomic 
Energy Commission created thereunder and vesting its licensing 
and related regulatory authority of facilities under chapter 6, 
7, 8, and 10 in a new Nuclear Regulatory Commission and trans- 
ferring all its other functions to a new Energy Research and 
Development Administration. 



"Chapter 1. Declaration, Findings, and Purpose 

"Section 1. Declaration. — Atomic energy is capable of application 
for peaceful as well as military purposes. It is therefore declared to 
be the policy of the United States that — 

"a. the development, use, and control of atomic energy shall be 
directed so as to make the maximum contribution to the general 
welfare, subject at all times to the paramount objective of making 
the maximum contribution to the common defense and security; 
and 

"b. the development, use, and control of atomic energy shall be 
directed so as to promote world peace, improve the general wel- 
fare, increase the standard of living, and strengthen free competi- 
tion in private enterprise. 

142 U.S.C. 2011-2281. Amended by Public Law 84-337 (69 Stat. 630) ; Public Law 
84-722 (70 Stat. 553) ; Public Law 84-1006 (70 Stat. 1069) ; Public Law 85-14 (71 
Stat. 11) ; Public Law 8o-79 (71 Stat. 274) ; Public Law 85-162 (71 Stat. 410) ; Public 
Law 85-177 (71 Stat. 455) ; Public Law 85-256 (71 Stat. 576) ; Public Law 85-287 (71 
Stat. 612) ; Public Law 85-479 (72 Stat. 276) ; Public Law 85-507 (72 Stat. 337) ; Public 
Law 85-602 (72 Stat. 525) ; Public Law 85-681 (72 Stat. 632) ; Public Law 85-744 (72 
Stat. 837) ; Public Law 86-43 (73 Stat. 73) ; Public Law 86-50 (73 Stat. 87) ; Public 
Law 86-300 (73 Stat. 574) ; Public Law 86-373 (73 Stat. 688) ; Public Law 87-206 (75 
Stat. 476) ; Public Law 87-615 (76 Stat. 409) ; Public Law 87-793 (76 Stat. 864) ; Public 
Law 88-72 (77 Stat. 88) ; Public Law 88-294 (78 Stat. 172) : Public Law 88-394 (78 Stat. 
376) ; Public Law 88-426 (78 Stat. 423) ; Public Law 88-448 (78 Stat. 490) ; Public Law 
88-489 (78 Stat. 602) ; Public Law 89-135 (79 Stat. 551) ; Public Law 89-210 (79 Stat. 
855) ; Public Law 89-645 (80 Stat. 891) : Public Law 90-190 (81 Stat. 577) ; Public Law 
91-161 (83 Stat. 444) ; Public Law 91-452 (84 Stat. 930) : Public Law 91-560 (84 Stat. 
1472) ; Public Law 92-84 (85 Stat. 307) : Public Law 92-307 (86 Stat. 191) : Public Law 
92-314 (86 Stat. 227) ; Public Law 93-377 (88 Stat. 472) ; Public Law 93-438 (88 Stat. 
1233) : Public Law 93-485 (88 Stat. 1460) : Public Law 93-514 (88 Stat. 1611) ; Public 
Law 94-197 [H.R. 8631]. 89 Stat. 1111, approved December 31. 1975: and by Public Law 
95-110 [S. 1153], 91 Stat. 884, approved September 20, 1977. 

(253) 



254 

"Sec. 2. Findings.^ — The Congress of the United States hereby 
makes the following findings concerning the development, use, and 
control of atomic energy : 

"a. The development, utilization, and control of atomic energy for 
military and for all other purposes are vital to the common defense 
and security. 

"c.^ The processing and utilization of source, bj^product, and special 
nuclear material aft'ect interstate and foreign commerce and must be 
regulated in the national interest. 

"d. The processing and utilization of source, byproduct, and special 
nuclear material must be regulated in the national interest and in 
order to provide for the common defense and security and to protect 
the health and safety of the public. 

"e. Source and special nuclear material, production facilities, and 
utilization facilities are affected with the public interest, and regula- 
tion by the United States of the production and utilization of atomic 
energy and of the facilities used in connection therewith is necessary 
in the national interest to assure the common defense and security and 
to protect the liealth and safety of the public. 

"f. The necessity for protection against possible interstate damage 
occurring from the operation of facilities for the production or utiliza- 
tion of source or special nuclear material places the operation of those 
facilities in interstate commerce for the purposes of this Act. 

"g. Funds of the United States may be provided for the develop- 
ment and use of atomic energy under conditions which will provide 
for the common defense and security and promote the general welfare. 

"i.'* In order to protect the public and to encourage the development 
of the atomic energy industry, in the interest of the general welfare 
and of the common defense and security, the United States may make 
funds available for a portion of the damages suffered by the public 
from nuclear incidents, and may limit the liability of those persons 
liable for such losses.^ 

"Sec. 3. Purpose. — It is the purpose of this Act to effectuate the 
policies set forth above by providing for — 

"a. a program of conducting, assisting, and fostering research 
and development in order to encourage maximum scientific and 
industrial progress ; 

"b. a program for the dissemination of unclassified scientific 
and technical information and for the control, dissemination, and 
declassification of Restricted Data, subject to appropriate safe- 
guards, so as to encourage scientific and industrial progress ; 

2 Sec. 20 of Public Law 88-489 (78 Stat. 602) (1964), the Private Ownership of Special 
Nuclear Materials Act, reads as follows : 

"Nothing in this Act shall be deemed to diminish existing authority of the United 
States, or of the Atomic Energy Commission under the Atomic Energy Act of 1954, as 
amended, to regulate source, byproduct, and special nuclear material and production and 
utilization facilities, or to control such materials and facilities exported from the United 
States by imposition of governmental guarantees and security safeguards with respect 
thereto, in order to assure the common defense and security and to protect the health 
and safety of the public, or to reduce the responsibility of the Atomic Energy Commission 
to achieve such objectives." 

'I»ublic Law 88-489 (78 Stat. 602) (1964), sec. 1, deleted subsec. 2 b. Subsec. 2 b. read 
as follows : 

"b. In permitting the property of the United States to be used by others, such use must 
be regulated in the national interest and in order to provide for the common defense and 
security and to protect the health and safety of the public." 

* Public Law 88-489 (78 Stat. 602) (1964), sec. 2, deleted .subsec. 2 h. Subsec. 2 h. read 
as follows : 

''h. It is essential to the common defense and security that title to all special nuclear 
material be in the United States while such special nuclear material is within the United 
States." 

"Public Law 85-256 (71 Stat. 576) (1957), sec. 1, added subsec. 1. 



255 

"c. a program for Government control of the possession, use, 
and production of atomic energy and special nuclear material, 
Avhether owned by the Government or others, so directed as to 
make the maximum contributions to the common defense and 
security and the national welfare, and to provide continued 
assurance of the Government's ability to enter into and enforce 
agreements with nations or groups of nations for the control of 
special nuclear materials and atomic weapons.*^ 

"d. a program to encourage widespread participation in the 
development and utilization of atomic energy for peaceful pur- 
poses to the maximum extent consistent Avith the common defense 
and security and with the health and safety of the public ; 

''e. a program of international cooperation to promote the com- 
mon defense and security and to make peaceful applications of 
atomic energy as widely as expanding technology and considera- 
tions of the common defense and security will permit ; and 

"f. a program of administration which will be consistent with 
the foregoing polices and programs, w4th international arrange- 
ments, and with agreements for cooperation, which will enable the 
Congress to be currently informed so as to take further legislative 
action as may be appropriate. 

"Chapter 2. Definitions 

"Sec. 11. Definitions. — The intent of Congress in the definitions as 
given in this section should be construed from the words or phrases 
used in the definitions. As used in this Act : 

"a. The term 'agency of the United States' means the executive 
branch of the United States, or any Government agency, or the legis- 
lative branch of the United States, or any agency, committee, commis- 
sion, office, or other establishment in the legislative branch, or the 
judicial branch of the United States, or any office, agency, committee, 
commission, or other establishment in the judicial branch. 

"b. The term 'agreement for cooperation' means any agreement with 
another nation or regional defense organization authorized or permit- 
ted by sections 54, 57, 64, 82, 91 c, 103, 104, or 144, and made pursuant 
to section 123.'^ 

"c. The term 'atom energy' means all forms of energy released in 
the course of nuclear fission or nuclear transformation. 

"d. The term 'atomic weapon' means any device utilizing atomic 
energy, exclusive of the means for transporting or propelling the de- 
vice (where such means is a separable and divisible part of the device) , 
the principal purpose of which is for use as, or for development of, a 
weapon, a weapon prototype, or a w^eapon test device. 

"e. The term 'byproduct material' means any radioactive material 
(except special nuclear material) yielded in or made radioactive by 
exposure to the radiation incident to the process of producing or utiliz- 
ing special nuclear material. 

"f. The term 'Commission' means the Atomic Energy Commission. 

« Public Law 88-489 (78 Stat. 602) (1&64), sec. 3, amended this subsection. Before 
nniendnient it read : 

"c. A program for Government control of the possession, use, and production of atomic 
enerpj- and special nuclear material so directed as to make the maximum contribution to 
the common defense and security and the national welfare ;" 

'Public Law 87-206 (75 Stat. 475) (1961). sec. 2, amended this subsection by adding 
sec. 91 c. 



256 

"g. The term 'common defense and security' means the common 
defense and security of the United States. 

"h. The term 'defense information' means any information in any 
category determined by any Government agency authorized to classify 
information, as being information respecting, relating to, or affecting 
the national defense. 

"i. The term 'design' means (1) specifications, plans, drawings, 
blueprints, and other items of like nature; (2) the information con- 
tained therein ; or (3) the research and development data pertinent to 
the information contained therein. 

"j. The term 'extraordinary nuclear occurrence' means any event 
causing a discharge or dispersal of source, special nuclear, or by- 
product material from its intended place of confinement in amounts 
offsite, or causing radiation levels offsite, which the Commission de- 
termines to be substantial, and which the Commission determines has 
resulted or will probably result in substantial damages to persons off- 
site or property offsite. Any determination by the Commission that 
such an event has, or has not, occurred shall be final and conclusive, 
and no other official or any court shall have power or jurisdiction to 
review any such determination. The Commission shall establish cri- 
teria in writing setting forth the basis upon which such determina- 
tion shall be made. As used in this subsection, 'offsite' means away 
from 'the location' or 'the contract location' as defined in the applicable 
Commission indemnity agreement, entered into pursuant to section 
170.8 

"k. The term 'financial protection' means the ability to respond in 
damages for public liability and to meet the costs of investigating and 
defending claims and settling suits for such damages.^ 

"1. The term 'Government agency' means any executive department, 
commission, independent establishment, corporation, wholly or partly 
owned by the United States of America which is an instrumentality 
of the United States, or any board, bureau, division, service, office, 
officer, authority, administration, or other establishment in the execu- 
tive branch of the Government. 

"m. The term 'indemnitor' means (1) any insurer with respect to 
his obligations under a policy of insurance furnished as proof of fi- 
nancial protection ; (2) any licensee, contractor or other person who 
is obligated under any other form of financial protection, with respect 
to such obligations; and (3) the Commission Avith respect to any obli- 
gation undertaken by it in an indemnity agreement entered into pur- 
suant to section 170.^° 

"n. The term 'international arrangement' means any international 
agreement hereafter approved by the Cone:ress or any treaty during 
the time such agreement or treaty is in full force and effect, but does 
not include any agreement for cooperation. 

"o. The term 'Joint Committee' means the Joint Committee on 
Atomic Energy. 

"p. The term 'licensed activity' means an activity licensed pursuant 
to this Act and covered by the provisions of section 170. a.^^ 

s Public Law 80-045 (80 Stat. 801) (lOOfi). spc. 1. addod snbsoc I 
» Public Law 85-256 (71 Stat. 570) (1057). sec. 3. addod sii»)soo. Ic. 
10 Public Law 89-645 (80 Stat. 891) (1066), spc. 1. added siibsoc. m. 
" Public Law 85-256 (71 Stat. 576) (1957). sec. 3, added subsec. p. 



257 

"q. The term ^nuclear incident' means any occurrence, including an 
extraordinary nuclear occurrence/^ within the United States causing, 
within or outside the United States, bodily injury, sickness, disease, or 
death, or loss of or damage to property, or loss of use of property, 
arising out of or resulting from the radioactive, toxic, explosive, or 
other hazardous properties of source, special nuclear, or byproduct 
material : Provided^ however^ That as the term is used in subsection 
170 1., it shall include any such occurrence outside of the United States : 
And provided further^ That as the term is used in section 170 d., it shall 
include any such occurrence outside the United States if such occur- 
rence involves source, special nuclear, or byproduct material by, and 
used by or under contract with, the United States: And provided 
further^ That as the term is used in subsection 170 c, it shall in- 
clude any such occurrence outside both the United States and any 
other nation if such occurrence arises out of or results from the radio- 
active, toxic, explosive, or other hazardous properties of source, 
special nuclear, or byproduct material licensed pursuant to chap- 
ters 6, 7, 8, and 10 of this Act, which is used in connection with the 
operation of a licensed stationary production or utilization facility 
or which moves outside the territorial limits of the United States in 
transit from one person licensed by the Commission to another person 
licensed by the Commission.^^ 

"r. The term 'operator' means any individual who manipulates the 
controls of a utilization or production facility. 

"s. The term 'person' means (1) any individual, corporation, part- 
nership, firm, association, trust, estate, public or private institution, 
group. Government agency other than the Commission, any State or 
any political subdivision of, or any political entity within a State, any 
foreign government or nation or any political subdivision of any such 
government or nation, or other entity; and (2) any legal successor, 
representative, agent, or agency of the foregoing. 

"t. The term 'person indemnified' means (1) with respect to a 
nuclear incident occurring within the United States or outside the 
United States as the term is used in subsection 170 c, and with respect to 
any other nuclear incident in connection with the design, development, 
construction, operation, repair, maintenance, or use of the nuclear ship 
Savannah, the person with whom an indemnity agreement is executed 
or who is required to maintain financial protection, and any other 
person who may be liable for public liability or (2) with respect 
to any other nuclear incident occurring outside the United States, 
the person with w^hom an indemnity agreement is executed and any 
other person w^ho may be liable for public liability by reason of his 
activities under any contract with the Commission or any project to 
which indemnification under the provisions of subsection 170 d. has 

"Public Law 89-645 (80 Stat. 891) (1966), sec. 1. amended this subsection by inserting 
the phrase ", including an extraordinary nuclear occurrence,". 

"Public Law 85-256 (71 Stat. 576) (1957), sec. 3. added subsec. q. Prior to amendment 
by Public Law 89-645 (see footnote 9, above) the subsection had been amended by Public 
Law 87-615 (76 Stat. 409) (1962), sec. 4. Before amendment it read: "o. The term 
nuclear Incident' means any occurrence within the United States causing bodily Ifijury, 
sickness, disease, or death, or loss of or damage to property, or for loss of use of property, 
arising out of or resulting from the radioactive, toxic, explosive, or other hazardous proper- 
ties of source, special nuclear, or byproduct material : Provided, however. That as the 
term is used in subsection 170 1., It shall mean any such occurrence outside of the United 
States rather than within the United States." Public Law 94-197 (89 Stat. 1111) (1975). 
sec 1, substituted "source, special nuclear, or byproduct material" for "a facility or device" 
in the second proviso and added the third proviso. 



258 

been extended or under any subcontract, purchase order or other agree- 
ment, of any tier, under any such contract or project.^* 

"u. The term 'produce', when used in relation to special nuclear ma- 
terial, means (1) to manufacture, make, produce, or refine special nu- 
clear material ; (2) to separate special nuclear material from other sub- 
stances in which such material may be contained; or (3) to make or to 
produce new special nuclear material. 

"v. The term 'production facility' means (1) any equipment or de- 
vice determined by rule of the Commission to be capable of the produc- 
tion of special nuclear material in such quantity as to be of significance 
to the common defense and security, or in such manner as to affect the 
health and safety of the public; or (2) any important component part 
especially designed for such equipment or device as determined by the 
Commission. 

"w. The term 'public liability' means any legal liability arising out 
of or resulting from a nuclear incident, except : (i) claims under State 
or Federal workmen's compensation acts of employees of persons in- 
demnified who are employed at the site of and in connection with 
the activity where the nuclear incident occurs; (ii) claims arising out 
of an act of war; and (iii) whenever used in subsections 170 a., c, and 
k., claims for loss of, or damage to, or loss of use of property which is 
located at the site of and used in connection with the licensed activity 
which the nuclear incident occurs. 'Public liability' also includes dam- 
age to property of persons indenmified : Provided^ That such property 
is covered under the terms of the financial protection required, ex- 
cept property which is located at the site of and used in connection 
with the activity where the nuclear incident occurs.^^ 

"x. The term 'research and development' means (1) theoretical anal- 
ysis, exploration, or experimentation; or (2) the extension of inves- 
tigative findings and theories of a scientific or technical nature into 
practical application for experimental and demonstration purposes, 
including the experimental production and testing of models, devices 
equipment, materials, and processes. 

"y. The term 'Restricted Data' means all data concerning (1) de- 
sign, manufacture, or utilization of atomic weapons: (2) the produc- 
tion of special nuclear material; or (3) the use of special nuclear ma- 
terial in the production of energj^ but shall not include data declassi- 
fied or removed from the Restricted Data category pursuant to section 
142. 

"z. The term 'source material' means (1) uranium, thorium, or any 
other material which is determined by the Commission pursuant to 
the provisions of section 61 to be source material; or (2) ores contain- 
ing one or more of the foregoing materials, in such concentration as 
the Commission may by regulation determine from time to time. 

"Public Law 85-256 (71 Stat. 576) (1957). sec. 3. added subf?ection t. Public Law 
87-615 (76 Stat. 409) (1962). .<ec. 5, amendPd the subsection. Before amendment. It 
read : "r. The term 'person indemnified' means the person with whom an indemnity apree- 
ment is executed and anv other person who may be liable for public liability." Public Law 
94-197 (89 Stat. 1111) (1975). sec. 1. further amended the subsection. 

"Public Law 85-256 (71 Stat. 576) (1957). sec. .3. added subsection w. Public Law 
87-206 (75 Stat. 475) (1961), sec. 3, amended the subsection. Before amendment it read: 

"u. The term 'public liability' means any legal liability arising out of or resulting from 
a nuclear incident, except claims under State or Federal Workmen's Compensation Acts 
of emnloyees of persons indemnified who are employed at the site of and in connection 
with the activity where the nuclear incident occurs, and except for claims arising out of an 
act of war. 'Public liability* also includes damage to property of persons indemnified : 
Provided, That such property is covered under the terms of the financial protection 
required, except property which is located at the site of and used in connection with the 
activity where the nuclear incident occurs." 



259 

"aa. The term 'special nuclear materiar means (1) plutoniimi, 
uranium enriched in the isotope 233 or in the isotope 235, and any 
other material which the Commission, pursuant to the provisions of 
section 51, determines to be special nuclear material, but does not in- 
clude source material; or (2) any material artificially enriched by any 
of the foregointr, but does not include source material. 

"bb. The term 'United States' Avhen used in a geographical sense 
includes all Territories and possessions of the IJnited States, the 
Canal Zone and Puerto Rico.^^ 

"cc. The term 'utilization facility' means (1) any equipment or de- 
vice, except an atomic weapon, determined by rule of the Commission 
to be capable of making use of special nuclear material in such 
quantity as to be of significance to the common defense and security, 
or in such manner as to affect the health and safety of the public, or 
peculiarly adapted for making use of atomic energ}^ in such quantity 
as to be of significance to the common defense and security, or in such 
manner as to affect the health and safety of the public; or (2) any im- 
portant component part especially designed for such equipment or 
device as determined by the Commission. 



Chapter 6. Special Nuclear Material 

"Sec. 51. Special Nuclear Material. — The Commission may deter- 
mine from time to time that other material is special nuclear material 
in addition to that specified in the definition as special nuclear mate- 
rial. Before making any such determination, the Commission must 
find that such material is capable of releasing substantial quantities of 
atomic energy and must find that the determination that such material 
is special nuclear material is in the interest of the common defense and 
security, and the President must have expressly assented in writing 
to the determination. The Commission's determination, together with 
the assent of the President, shall be submitted to the Joint Committee 
and a period of thirty days shall elapse while Congress is in session (in 
computing such thirty days, there shall be excluded the days on which 
either House is not in session because of an adjournment for more than 
three days) before the determination of the Commission may become 
effective : Provided^ however^ That the Joint Committee, after having 
received such determination, may by resolution in writing, waive the 
conditions of or all or any portion of such thirty-day period. 



"Sec. 54.^^ Foreigx Distribution of Special Nuclear Material. — 
a. The Commission is authorized to cooperate with any nation or group 
of nations by distributing special nuclear material and to distribute 
such special nuclear material, pursuant to the terms of an agreement 
for cooperation to which such nation or group of nations is a party and 
which is made in accordance with section 123. Unless hereafter other- 
wise authorized by law the Commission shall be compensated for 

»« Public Law 84-1006 (70 Stat. 1069) (1956), sec. 1. amended this definition. Before 
amendment it read : 

"u. The term 'United States', when used in a geofrraphical sense, includes all Territories 
and possessions of the United States, and the Canal Zone" 

"As amended and restated by Sec. 2 of Public Law 93-377 (88 Stat. 472). 



260 

special nuclear material so distributed at not less than the Commis- 
sion's published charges applicable to the domestic distribution of 
such material, except that the Commission to assist and encourage 
research on peaceful uses or for medical therapy may so distribute 
without charge during any calendar year only a quantity of such 
material which at the time of transfer does not exceed in value $10,000 
in the case of one nation or $50,000 in the case of any group of nations. 
The Commission may distribute to the International Atomic Energy 
Agency, or to any group of nations, only such amounts of special 
nuclear materials and for such period of time as are authorized by 
Congress: Provided^ however^ That, (i) notwithstanding this pro- 
vision, the Commission is hereby authorized, subject to the provisions 
of section 123, to distribute to the Agency five thousand kilograms of 
contained uranium-235 five hundred grams of uranium-233, and three 
kilograms of plutonium, together with the amounts of special nuclear 
material which will match in amount the sum of all quantities of 
special nuclear materials made available by all other members of the 
Agency to June 1, 1960; and (ii) notwithstanding the foregoing pro- 
visions of this subsection, the Commission may distribute to the Inter- 
national Atomic Energy Agency, or to any group of nations, such 
other amounts of special nuclear materials and for such other periods 
of time as are established in writing by the Commission : Provided^ 
hoiceve7\ That before they are established by the Commission pur- 
suant to this subdivision (ii) , such proposed amounts and periods shall 
be submitted to the Congress and referred to the Joint Committee and 
a period of sixty days shall elapse while Congress is in session (in 
computing such sixty days, there shall be excluded the days on which 
either House is not in session because of an adjournment of more than 
three days) : And provided further^ That any such proposed amounts 
and periods shall not become effective if during such sixty-day period 
the Congress passes a concurrent resolution stating in substance that 
it does not favor the proposed action : And provided further^ That 
prior to the elapse of the first thirty days of any such sixty-day period 
the eloint Committee shall submit a report to the Congress of its views 
and recommendations respecting the proposed amounts and periods 
and an accompanying proposed concurrent resolution stating in sub- 
stance that the Congress favors, or does not favor, as the case may be, 
the proposed amounts or periods. The Commission may agree to re- 
purchase any special nuclear material distributed under a sale 
arrangement pursuant to this subsection which is not consumed in the 
course of the activities conducted in accordance with the agreement 
for cooperation, or any uranium remaining after irradiation of such 
special nuclear material, at a repurchase price not to exceed the Com- 
mission's sale price for comparable special nuclear material or uranium 
in effect at the time of delivery of such material to the Commission. 
The Commission may also agree to purchase, consistent with and 
within the period of the agreement for cooperation, special nuclear 
material produced in a nuclear reactor located outside the United 
States through the use of special nuclear material which was leased 
or sold pursuant to this subsection. Under any such agreement the 
Commission shall purchase only such material as is delivered to the 
Commission during any period when there is in effect a guaranteed 
purchase price for the same material produced in a nuclear reactor 
by a person licensed under section 104, established by the Commission 



261 

pursuant to section 56, and the price to be paid shall be the price so 
established by the Commission and in effect for the same material 
delivered to the Commission. 

"b. Notwithstanding the provisions of sections 123, 124, and 125, 
the Commission is authorized to distribute to any person outside the 
United States (1) plutonium containing 80 per centum or more by 
weight of plutonium-238, and (2) other special nuclear material when 
it has, in accordance with subsection 57 d., exempted certain classes 
or quantities of such other special nuclear material or kinds of uses 
or users thereof from the requirements for a license set forth in this 
chapter. Unless hereafter otherwise authorized by law, the Commis- 
sion shall be compensated for special nuclear material so distributed 
at not less than the Commission's published charges applicable to the 
domestic distribution of such material. The Commission shall not dis- 
tribute any plutonium containing 80 per centum or more by weight of 
plutonium-238 to any person under this subsection if, in its opinion, 
such distribution would be inimical to the common defense and secu- 
rity. The Commission may require such reports regarding the use of 
material distributed pursuant to the provisions of this subsection as 
it deems necessary. 

"c. The Commission is authorized to license or otherwise permit 
others to distribute special nuclear material to any person outside the 
United States under the same conditions, except as to charges, as 
would be applicable if the material were distributed by the 
Commission. 

"Sec. 55. Acquisition. — The Commission is authorized, to the ex- 
tent it deems necessary to effectuate the provisions of this Act, to 
purchase without regard to the limitations in section 54 or any guaran- 
teed purchase prices established pursuant to section 56, and to take, 
requisition, condemn, or otherwise acquire any special nuclear material 
or any interest therein. Any contract of purchase made under this sec- 
tion may be made without regard to the provisions of section 3709 of 
the Revised Statutes, as amended, upon certification by the Commis- 
sion that such action is necessary in the interest of the common defense 
and security, or upon a showing by the Commission that advertising 
is not reasonably practicable. Partial and advance payments may be 
made under contracts for such purposes. Just compensation shall be 
made for any right, property, or interest in property taken, requisi- 
tioned, or condemned under this section.^® 

"Sec. 56. Guaranteed Purchase Prices. — The Commission shall 
establish guaranteed purchase prices for plutonium produced in a 
nuclear reactor by a person licensed under section 104 and delivered 
to the Commission before January 1, 1971. The Commission shall also 
establish for such periods of time as it may deem necessary but not to 
exceed ten years as to any such period, guaranteed purchase prices 
for uranium enriched in the isotope 233 produced in a nuclear reactor 
by a person licensed under section 103 or section 104 and delivered to 

J« Public Law 88-489 (78 Stat. 602) (1964). sec. 10. amended sec. 55 bj' substituting a 
comDlete new sec. 55. Before amendment sec. 55 read as follows : 

"Sec. 55. Acquisition. — The Commission is authorized to purchase or otherwise acquire 
any special nuclear material or any interest therein outside the United States without 
regard to the provisions of section 3709 of the Revised Statutes, as amended, upon 
certification by the Commission that such action is necessary in the interest of the 
common defense and security, or upon a showing by the Commission that advertising 
is not reasonably practicable. Partial and advance payments may be made under contracts 
for such purposes." 



262 

the Commission within the period of the ^arantee.^^ Guaranteed pur- 
chase prices established under the authority of this section shall not 
exceed the Commission's determination of the estimated value of plu- 
tonium or uranium enriched in the isotope 233 as fuel in nuclear re- 
actors, and such prices shall be established on a nondiscriminatory 
basis : Provided^ That the Commission is authorized to establish such 
guaranteed purchase prices only for such plutonium or uranium en- 
riched in the isotope 233 as the Commission shall determine is pro- 
duced through the use of special nuclear material which was leased or 
sold by the Commission pursuant to section 53.^^ 
"Sec. 57.^^ Prohibition. — 

"a. Unless authorized by a general or specific license issued by the 
Commission, which the Commission is authorized to issue pursuant to 
section 53, no person may transfer or receive in interstate commerce, 
transfer, deliver, acquire, own, possess, receive possession of or title 
to, or import into or export from the United States any special nuclear 
material. 

"b. It shall be unlawful for any person to directly or indirectly en- 
gage in the production of any special nuclear material outside of the 
United States except (1) under an agreement for cooperation made 
pursuant to section 123, or (2) upon authorization by the Commission 
after a determination that such activity wall not be inimical to the in- 
terest of the United States. 

"c. The Commission shall not — • 

"(1) distribute any special nuclear material to any person for a 
use which is not under the jurisdiction of the United States except 
pursuant to the provisions of section 54 ; or 

"(2) distribute any special nuclear material or issue a license 
pursuant to section 53 to any person within the United States if 
the Commission finds that the distribution of such special nuclear 
material or the issuance of such license would be inimical to the 
common defense and security or Avould constitute an unreasonable 
risk to the health and safety of the public. 

"Public Law 91-500 (84 Stat. 1472) (1970), sec. 2, added "section 103 or" to this 
sentence. 

20 Public Law 88-489 (78 Stat. 602) (1964), sec. 11 amended sec. 56 by substituting a 
new sec. ~^(^. Before amendment sec. 56 read as follows : 

"Sec. 56. Fair Price. — In determining the fair price to be paid by the Comhilssion 
pursuant to section 52 for the production of any special nuclear material, the Commission 
shall take into consideration the value of the special nuclear material for its intended use 
by the TJnited States and may give such weight to the actual cost of producing that 
material as the Commission finds to be equitable. The fair price, as may be determined 
by the Commission, shall apply to all licensed producers of the same material : Provided, 
however. That the Commission may establish guaranteed fair prices for all special nuclear 
material delivered to the Commission for such period of time as it may deem necessary 
but not to exceed seven years." 

21 Public Law 88-489 (78 Stat. 602) (1964). sec. 12. amended sec. 57 substituting a 
complete new sec. 57. Before amendment sec. 67 read as follows : 

"Sec. 57. Prohibition'. — 

"a. It shall be unlawful for any person to — 

"(1) possess or transfer any special nuclear material which Ig the property of the 
United States except as authorized by the Commission pursuant to subsection 53 a. ; 

"(2) transfer or recpive any special nuclear material In Interstate commerce excepi 
as authorized by the Commission pursuant to subsection 25 a., or export from or im- 
port into the T'nited States any special nuclear material ; and 

"(3) directly or indirectly engage in the production of any special nuclear material 
outside of the United States ex-ept (A) under an agreement for cooperation made 
pursuant to section 123, or (B) upon authorization by the Commission aftpr n deter- 
mination that such activity will not be Inimical to the interest of the United States, 
"b. The Commission shall not distribute any special nuclear material — 

"(1) to any person for a use which is not under the jurisdiction of the United 
States except pursuant to the provisions of section 54 ; or 

"(2) to any person within the TTnited States, if the Commission finds that the 
distribution of such special nuclear material to such person would be inimical to 
the common defense and security." 



263 

"d.2" The ConimiRsion is authorized to establish classes of special nu- 
clear material and to exempt certain classes or quantities of special 
nuclear material or kinds of uses or users from the requirements for 
a license set forth in this section when it makes a finding that the 
exem2)tion of such classes or quantities of special nuclear material or 
such kinds of uses or users would not be inimical to the common 
defense and security and would not constitute an unreasonable risk to 
the health and safety of the public. 

"Sec. 58. Review. — Before the Commission establishes any guaran- 
teed purchase price or guaranteed purchase price period in accord- 
ance with the provisions of section 56, or establishes any criteria for 
the waiver of any charge for the use of special nuclear material li- 
censed and distributed under section 53, the proposed guaranteed pur- 
chase price, guaranteed purchase price pei-iod, or criteria for the 
waiver of such charge shall be submitted to the Joint Committee and 
a period of forty-five days shall elapse while Congress is in session 
(in computing such forty-five days there shall be excluded the days 
in which either House is not in session because of adjournment for 
more than three days) : Provided, however. That the Joint Committee, 
after having received the proposed guaranteed purchase price, guaran- 
teed purchase price period, or criteria for the waiver of such charge, 
may by resolution in writing waive the conditions of, or all or any por- 
tion of, such forty-five day period.^^ 

"Chapter 7. Source Material 

"Sec. 61. Source Material. — The Commission may determine from 
time to time that other material is source material in addition to those 
specified in the definition of source material. Before making such de- 
termination, the Commission must find that such material is essential 
to the production of special nuclear material and must find that the de- 
termination that such material is source material is in the interest of 
the common defense and security, and the President must have ex- 
pressly assented in writing to the determination. The Commission's 
determination, together with the assent of the President, shall be sub- 
mitted to the Joint Committee and a period of thirty days shall elapse 
while Congi-ess is in session (in computing such thirty days, there shall 
be excluded the days on which either House is not in session because 
of an adjournment of more than three days) before tlie determination 
of the Commission may become effective : Provided^ however. That the 
Joint Committee, after having received such determination, may by 
resolution in writing waive the conditions of or all or any portion of 
such thirty-day period. 

"Sec. 62. License for Transfers Required. — Unless authorized by 
a general or specific license issued by the Commission, which the Com- 

" Subsection (d) was added by sec. 3 of Public Law 93-377 (88 Stat. 472 at 475). 

23 Public Law 88-489 (78 Stat. 602) (1964), sec. 13. amended sec. 58 by substituting a 
complete new sec. 58. liefore amendment sec. 58 read as follows : 

"Sec. 58. Review. — Before the Commission establishes any fair price or guaranteed 
fair price period in accordance with the provisions of section 56, or establishes any criteria 
for the waiver of any charge for the use of special nuclear material licensed or distributed 
under section 53 the proposed fair price, guaranteed fair price period, or criteria for the 
waiver of such charge shall be submitted to the .Toint Committee, and a period of forty- 
five day.s shall elapse while Congress is in session (in computing such forty-five days there 
shall be excluded the days in which either House is not in session because of adjourn- 
ment for more than three days) : Provided, however. That the Joint Committee, after 
having received the proposed fair price, guaranteed fair price period, or criteria for the 
waiver of such charge, may by resolution waive the conditions of or all or any portion 
or such forty-five day period." 



264 

mission is hereby authorized to issue, no person may transfer or re- 
ceive in interstate commerce, transfer, deliver, receive possession of or 
title to, or import into or export from the United States any source 
material after removal from its place of deposit in nature, except that 
licenses shall not be required for quantities of source material which, 
in the opinion of the Commission, are unimportant. 

If * * * ^ * * 

"Sec. 64. Foreign Distribution of Source Material. — The Com- 
mission is authorized to cooperate with any nation by distributing 
source material and to distribute source material pursuant to the terms 
of an agreement for cooperation to which such nation is a party and 
which is made in accordance with section 123. The Commission is also 
authorized to distribute source material outside of the United States 
upon a determination by the Commission that such activity will not 
be inimical to the interests of the United States. 

9ic * lie ♦ >ic ♦ * 

"Sec. 69. Prohibition. — The Commission shall not license any per- 
son to transfer or deliver, receive possession of or title to, or import 
into or export from the United States any source material if, in the 
opinion of the Commission, the issuance of a license to such person 
for such purpose would be inimical to the common defense and security 
or the health and safety of the public. 

"CiiArTER 8. Byproduct Material 

"Sec. 81. Domestic Distribution. — No person may transfer or re- 
ceive in interstate commerce, manufacture, produce, transfer, acquire, 
own, possess, import, or export any byproduct material, except to 
the extent authorized by this section or by section 82. The Commission 
is authorized to issue general or specific licenses to applicants seeking 
to use byproduct material for research or development purposes, for 
medical therapy, industrial uses, agricultural uses, or such other use- 
ful applications as may be developed. The Commission may distribute, 
sell, loan, or lease such bj^ product material as it owns to licensees ^^ 
with or Avithout charge: ProviclecL Tiowcvei\ That, for byproduct 
material to be distributed by the Commission for a chaige, the Com- 
mission shall establish prices on such equitable basis as. in the opinion 
of the Commission, (a) will provide reasonable compensation to the 
Government for such material, (b) will not discourage the use of 
such material or the development of sources of supply of such mate- 
rial independent of the Commission, and (c) will encourage research 
and development. In distributing such material, the Commission shall 
give preference to applicants proposing to use such material either 
in the conduct of research and development or in medical therapy. 
Licensees of the Commission may distribute byproduct material only 
to applicants therefor who are licensed by the Commission to receive 
such byproduct material. The Commission shall not permit the distri- 
bution of any byproduct material to any licensee, and shall recall or 
order the recall of any distributed material from any licensee, who 
is not equipped to observe or who fails to observe such safety standards 
to protect health as may be established by the Commission or who uses 
such material in violation of law or regulation of the Commission or 

" Sec. 4 of Public Law 93-377 (88 Stat. 472 at 475) deleted the word "licensees" and 
substituted "qualified applicants". 



265 

in a manner other than as disclosed in the application therefor or 
approved by the Commission. The Commission is authorized to estab- 
lish classes of byproduct material and to exempt certain classes or 
quantities of material or kinds of uses or users from the requirements 
for a license set forth in this section when it makes a finding that the 
exemption of such classes or quantities of such material or such kinds 
of uses or usei*s will not constitute an unreasonable risk to the com- 
mon defense and security and to the health and safety of the public. 

"Sec. 82. Foreign Distribution of Byproduct Material. — 

"'a. The Commission is authorized to cooperate with any nation by 
distributing byproduct material, and to distribute byproduct material, 
pursuant to the terms of an agreement for cooperation to which such 
nation is party and which is made in accordance with section 123. 

''b. The Commission is also authorized to distribute byproduct mate- 
rial to any person outside the United States upon application therefor 
by such person and demand such charge for such materials as would be 
charged for the material if it were distributed within the United 
States: ProcidecL however. That the Commission shall not distribute 
any such material to any person under this section if, in its opinion, 
such distribution would be inimical to the common defense and secu- 
rity: And frovided further^ That the Commission may require such 
reports regarding the use of material distributed pursuant to the pro- 
visions of this section as it deems necessary. 

"c. The Commission is authorized to license others to distribute by- 
product material to any person outside the United States under the 
same conditions, except as to charges, as would be applicable if the 
material were distributed by the Commission. 

"Chapter 9. J^Iilitary Application of Atomic Energy 

"Sec. 91. Authortty. — 

"a. The Commission is authorized to — 

"(1) conduct experiments and do research and development 
work in the military application of atomic energy; and 

"(2) engage in the production of atomic weapons, or atomic 
weapon parts, except that such activities shall be carried on only 
to the extent that the express consent and direction of the Presi- 
dent of the United States has been obtained, which consent and 
direction shall be obtained at least once each year, 
"b. The President from time to time may direct the Commission (1) 
to deliver such quantities of special nuclear material or atomic weapons 
to the Department of Defense for such use as he deems necessary in 
the interest of national defense, or (2) to authorize the Department of 
Defense to manufacture, produce, or acquire any atomic weapon or 
utilization facility for military purposes: Provided, h.o\revei\ That 
such authorization shall not extend to the production of special nu- 
clear material other than that incidental to the operation of such uti- 
lization facilities. 

"c.-^ The President may authorize the Commission or the Depart- 
ment of Defense, with the assistance of the other, to cooperate with 
another nation and, notwithstanding the provisions of section 57, 62. 
or 81, to transfer by sale, lease, or loan to that nation, in accordance 
with terms and conditions of a program approved by the President — 

2= Public Law 85-479 (72 Stat. 276) (1958). sec. 1. added subser #• to sec. 91. 

20-594 O - 78 - 18 



266 

"(1) nonnuclear parts of atomic weapons provided that such 
nation has made substantial progress in the development of atomic 
weapons, and other nonnuclear parts of atomic weapons systems 
involving Kestricted Data provided that such transfer will not 
contribute significantly to that nation's atomic weapon design, 
development, or fabrication capability; for the purpose of im- 
proving that nation's state of training and operational readiness ; 
"(2) utilization facilities for military applications; and 
" (3) source, byproduct, or special nuclear material for research 
on, development of, production of, or use in utilization facilities 
for military applications ; and 

" (4) source, byproduct, or special nuclear material for research 
on, development of, or use in atomic weapons : Provided^ Jiowever^ 
That the transfer of such material to that nation is necessary to 
improve its atomic weapon design, development, or fabrication 
capability: And provided further^ That such nation has made 
substantial progress in the development of atomic weapons, 
whenever the President determines that the proposed cooperation and 
each proposed transfer arrangement for the nonnuclear parts of atomic 
weapons and atomic weapons systems, utilization facilities or source, 
b^^product, or special nuclear material will promote and will not con- 
stitute an unreasonable risk to the common defense and security, w^hile 
such other nation is participating with the United States pursuant to 
an international arrangement by substantial and material contribu- 
tions to the mutual defense and security: Provided^ hoioever^ That 
the cooperation is undertaken pursuant to an agreement entered into 
in accordance with section 123: And provided further^ That if an 
agreement for cooperation arranged pursuant to this subsection pro- 
vides for transfer of utilization facilities for military applications the 
Commission, or the Department of Defense with respect to cooperation 
it has been authorized to undertake, may authorize any person to trans- 
fer such utilization facilities for military applications in accordance 
with the terms and conditions of this subsection and of the agreement 
for cooperation. 

"Sec. 92.2« Prohibition. — It shall be unlawful, except as provided in 
section 91, for any person to transfer or receive in interstate or for- 
eign commerce, manufacture, produce, transfer, acquire, possess, im- 
port, or export any atomic weapon. Nothing in this section shall be 
deemed to modify the provisions of subsection 31 a. or section 101. 

"Chapter 10. Atomic Energy Licenses 

"Sec. 101. License Required. — It shall be unlawful, except as pro- 
vided in section 91, for any person within the United States to trans- 
fer or receive in interstate commerce, manufacture, produce, transfer, 
acquire, possess, use,^^ import, or export any utilization or production 
facility except under and in accordance with a license issued by the 
Commission pursuant to section 103 or 104. 

"Public Law 85-479 (72 Stat. 276) (1958), sec. 2, amended sec. 92 by substituting a 
complete new sec. 92. Before amendment sec. 92 read as follows : 

"Sec. 92. Prohibition. — It shall be unlawful for any person to transfer or receive 
in interstate commerce, manufacture, produce, transfer, acquire, possess, import, or export 
any atomic weapon, except as may be authorized by the Commission pursuant to the provi- 
sions of section 91. Nothing in this section shall be deemed to modify the provisions of 
subsection 31 a. or section 101." 

2T Public Law 84-1006 (70 Stat. 1069) (1956). sec. 11. added the word "use". 



267 

"Sec. 102.-^ Utilization axd Productiox Facilities for Indus- 
trial OR C031MERCIAL Purposes. — 

"a. Except as provided in subsections b. and c, or otherwise specifi- 
cally authorized by law, any license hereafter issued for a utilization 
or production facility for industrial or commercial purposes shall be 
issued pursuant to section 103. 

"b. Any license hereafter issued for a utilization or production facil- 
ity for industrial or commercial purposes, the construction or opera- 
tion of which was licensed pursuant to subsection 104 b. prior to enact- 
ment into law of this subsection, shall be issued under subsection lO-i b. 

"c. Any license for a utilization or production facility for industrial 
or commercial purposes constructed or operated under an arrangement 
with the Commission entered into under the Cooperative Power Reac- 
tor Demonstration Program shall, except as otherwise specifically re- 
quired by applicable law, be issued under subsection 104 b. 

"Sec. 103. Commercial Licenses. — 

"a. The Commission is authorized to issue licenses to persons apply- 
ing therefore to transfer or receive in intei'state commerce, manufac- 
ture, produce, transfer, acquire, possess, use,^^ import, or export under 
the terms of an agreement for cooperation arranged pursuant to sec- 
tion 123, utilization or production facilities for industrial or commer- 
cial purposes."'^ Such licenses shall be issued in accordance with the 
provisions of chapter 16 and subject to such conditions as the Commis- 
sion may by rule or regulation establish to effectuate the purposes and 
provisions of this Act. 

"b. The Commission shall issue such licenses on a nonexclusive basis 
to persons applying therefor (1) whose proposed activities will serve 
a useful purpose proportionate to the quantities of special nuclear ma- 
terial or source material to be utilized; (2) who are equipped to ob- 
serve and Avho agree to observe such safety standards to protect health 
and to minimize danger to life or property as the Commission may by 
rule establish: and (3) who agree to make available to the Commission 
such technical information and data concerning activities under such 
licenses as the Commission may determine necessary to promote the 
common defense and security and to protect the health and safety of 
the public. All such information may be used by the Commission only 
for the purposes of the common defense and security and to protect 
the health and safety of the public. 

"c. Each such license shall be issued for a specified period, as deter- 
mined by the Commission, depending on the type of activity to be 
licensed, but not exceeding forty years, and may be renewed upon 
the expiration of such period. 

2« Public Law 91-560 (84 Stat. 1472) (1970), sec. 3, amended sec. 102, prior to amend- 
ment It read as follows : 

"Sec. 102. Finding of Practical Value. — Whenever the Commission has made a finding 
in writinp: that any type of utilization or production facility has been suflflclentlv developed 
to be of practical value for Industrial or commercial purposes, the Commission 'mav there- 
*"^^^^^"^ licenses for such type of facility pursuant to section 103." 

» Public Law 84-1006 (70 Stat. 1069), sec. 12. added the word "use.". 
.^^^"^^^*^ L^^ 91-650 (84 Stat. 1472) (1970), sec. 4, amended the first sentence of sec. 
103 a. Before amendment it read as follows : 

"Subsequent to a finding by the Commission as required in section 102. the Commission 
may issue licenses to transfer or receive In Interstate commerce, manufacture, produce, 
transfer, acquire, possess, use, import, or export under the terms of an agreement for 
cooperation arranged pursuant to section 123. such type of utilization or production 
facility. 



268 

"d. No license under this section may be given to any person for 
activities which are not under or within the jurisdiction of the United 
States, except for the export of production or utilization facilities 
under terms of an agreement for cooperation arranged pursuant to 
section 123, or except under the provisions of section 109. No license 
may be issued to an alien or any ^^ corporation or other entity if 
the Commission knows or has reason to believe it is owned, controlled, 
or dominated by an alien, a foreign corporation, or a foreign govern- 
ment. In any event, no license may be issued to any person within the 
United States if, in the opinion of the Commission, the issuance of a 
license to such person would be inimical to the common defense and 
security or to the health and safety of the public. 

"Sec. 104. Medical Therapy and Research and Development. — 

"a. The Commission is authorized to issue licenses to persons apply- 
ing therefor for utilization facilities for use in medical therapy. In 
issuing such licenses the Commission is directed to permit the widest 
amount of effective medical therapy possible with the amount of 
special nuclear material available for such purposes and to impose 
the minimum amount of regulation consistent with its obligations 
under this Act to promote the common defense and security and to 
protect the health and safety of the public. 

"b.^- As provided for in subsection 102b. or 102c., or where specifi- 
cally authorized by law, the Commission is authorized to issue licenses 
under this subsection to persons applying therefor for utilization and 
production facilities for industrial and commercial purposes. In issu- 
ing licenses under this subsection, the Commission shall impose the 
minimum amount of such regulations and terms of license as will 
permit the Commission to fulfill its obligations under this Act. 

"c. The Commission is authorized to issue licenses to persons apply- 
ing therefor for utilization and production facilities useful in the 
conduct of research and development activities of the types specified 
in section 31 and which are not facilities of the type specified in sub- 
section 104b. The Commission is directed to impose only such mini- 
mum amount of regulation of the licensee as the Commission finds 
will permit the Commission to fulfill its obligations under this Act 
to promote the common defense and security and to protect the health 
and safety of the public and will permit the conduct of widespread 
nnd diverse research and development. 

"d. No license under this section may be given to any person for 
activities which are not under or within the jurisdiction of the United 
States, except for the export of production or utilization facilities 
under terms of an agreement for cooperation arranged pursuant to 

31 Public Law 84-1006 (70 Stat. 1069) (1956), sec. 13, added the words "an alien or any" 
between the words "to" and "anj'" in the second sentence of subsec. 103 d. Addition of the 
word "any" was, of course, unnecessary. 

«- Public Law Gl-.ieO (84 Stat. 1472) (1970), sec. 5, amended subsec. 104 b. Before 
amendment it read as follows : 

"b. The Commission is authorized to issue licenses to persons applying therefor for 
utilization and production facilities involved in the conduct of research and development 
activities leading to the demonstration of the practcal value of such facilities for industrml 
or commercial purposes. In issuing licenses under this subsection, the Commission shall 
Impose the minimum amount of such regulations and terms of license as will permit the 
Commission to fulfill its obligations under this Act to promote the common defense and 
security and to protect the health and safety of the public and will be compatible with the 
regulations and terms of license which would apply in tlie event that a commercial 
license were later to bo issued pursuant to section 103 for that type of facility. In issuing 
such licenses, priority shall be given to those activities which will, in the opinion of the 
Commission, lead to "major advances In the application of atomic energy for Industrial 
or commercial purposes." 



269 

section 123 or except under the provisions of section 109. No license 
may be issuod to any corporation or other entity if the Comniission 
knows or has reason to believe it is owned, controlled, or dominated 
by an alien, a foreign corporation, or a foreign government. In any 
event, no license may be issued to any person within the United 
States if, in the opinion of the Commission, the issuance of a license 
to such person would be inimical to the common defense and security 
or to the health and safety of the public. 



"Chapter 11. International, Activities 

"Sec. 121. Effect of International Arrangements. — Any pro- 
vision of this Act or any action of the Commission to the extent and 
during the time that it conflicts with the provisions of any inter- 
national arrangement made after the date of enactment of this Act 
shall be deemed to be of no force or effect. 

"Sec. 122. Policies Contained in International Arrangements. — 
In the performance of its functions under this Act, the Commission 
shall give maximum effect to the policies contained in any inter- 
national arrangement made after the date of enactment of this Act. 
"Sec. 123.^^ Cooperation With Other Xations. — Xo cooperation 
with any nation or regional defense organization pursuant to sections 
53, 54 a., 57, 64, 82, 91, 103, 104, or 144 shall be undertaken until— 

"a. the Commission or, in the case of those agreements for 
cooperation arranged pursuant to subsection 91 c. or 144 b. which 
are to be implemented by the Department of Defense, the De- 
partment of Defense has submitted to the President the proposed 
agreement for cooperation, together with its recommendations 
thereon, which proposed agreement shall include (1) the terms, 
conditions, duration, nature, and scope of the cooperation; (2) 
a guaranty by the cooperating party that security safeguards and 
standards as set forth in the agreement for cooperation will be 
maintained: (3) except in the case of those agreements for co- 
operation arranged pursuant to subsection 91 c. a guaranty by the 
cooperating party that any material to be transferred pursuant 
to such agreement will not be used for atomic weapons, or for 
research on or development of atomic weapons or for any other 
military purpose; and (4) a guaranty by the cooperating party 
that any material or any Restricted Data to be transferred pur- 
suant to the agreement for cooperation will not be transferred to 
unauthorized persons or beyond the jurisdiction of the cooperat- 
ing party, exc^ept as specified in the agreement for cooperation; 



«» Public Law 85-479 (72 Stat. 276) (1958). sec. 3. amended sec. 123 by Inserting "91." 
and substituting a new snbsec. a. Before amendment subsec. a. read as follows : 

"a. the Commission or. in the case of those agreements for cooperation arranged pursuant 
to subsection 144 b.. the Department of Defense has submitted to the President the 
proposed agreement for cooneration, together with its recommendation thereon, which 
proposed agreement shall include (1) the terms, conditions, duration, nature, and scope of 
the cooperation: (2) a guaranty by the cooperating party that security safeguards and 
standards as set forth in the agreement for cooperation will' be maintained ; (3) a guaranty 
by the cooperating party that any material to be transferred pursuant to such agreement 
will not be used for atomic weapons, or for research on cr development of atomic weapons, 
or for any other military purpose; and (4) a guaranty by the cooperating party that any 
material or any Restricted Data to be transferred pursuant to the agreement for coopera- 
tion will not be transferred to unauthorized persons or beyond the jurisdiction of the 
cooperating party, except as specified in the agreement for cooperation ;". 

Public Law 88-489 (78 Stat. 602) (1964), sec. 15, added "53,". 



270 

"b. the President has approved and authorized the execution 
of the proposed agreement for cooperation, and has made a de- 
termination in writing that the performance of the proposed 
agreement will promote and will not constitute an unreasonable 
risk to the common defense and security ; 
"c. the proposed agreement for cooperation, togrtlier with the ap- 
proval and the determination of the President, has been submitted to 
the Joint Committee and a period of thirty days has elapsed while 
Congress is in session (in computing such thirty days, there shall be 
excluded the days on which either House is not in session because of 
an adjournment of more than three days) : Provided^ hoivever, That 
the Joint Committee, after having receiA^ed such agreement for coop- 
eration, may by resolution in writing waive the conditions of all or 
any portion of such thirty-day period; and;^* 

"d.^^ The proposed agreement for cooperation, together Avith the 
approval and determination of the President, if arranged pursuant to 
subsection 91 c, 144 b., or 144 c, or if entailing implementation of 
sections 53, 54, 103, or 104 in relation to a reactor that may be capable 
of producing more than five thermal megawatts or special nuclear 
material for use in connection therewith, has been submitted to the 
Congress and referred to the Joint Committee and a period of sixty 
days has elapsed while Congress is in session (in computing such sixty 
days, there shall be excluded the days on which either House is not in 
session because of an adjournment of more than three days), but any 
such proposed agreement for cooperation shall not become effective if 
during such sixty-day period the Congress passes a concurrent resolu- 
tion stating in substance that it does not favor the proposed agree- 
ment for cooperation: Provided^ That prior to the elapse of the first 
thirty days of any such sixty-day period the Joint Committee shall 
submit a report to the Congress of its vicAvs and recommendations 
respecting the proposed agreement and an accompanying proposed 
concurrent resolution stating in substance that the Congress favors, or 
does not favor, as the case may be, the proposed agreement for cooper- 
ation. Any such concurrent resolution so reported shall become the 
pending business of the House in question (in the case of the Senate 
the time for debate shall be equally divided betAveen the proponents 
and the opponent) Avithin tAventy-five days and shall be A'oted on 
within five calendar days thereafter, unless such House shall otherAvise 
determine. 

"Sec. 124. International Atomic Pool. — The President is author- 
ized to enter into an international arrangement with a group of nations 
proAdding for international cooperation in the nonmilitary applica- 
tions of atomic energy and he may thereafter cooperate with that 
group of nations pursuant to sections 54 a, 57, 64, 82, 103, 104, or 114 a. : 
Provided^ however^ That the cooperation is undertaken pursuant to an 
agreement for cooperation entered into in accordance Avith section 123. 

3* Public Law 85-681 (72 Stat. 632) (1958), sec. 4, added the proviso to subsec. 123 c. 
The semioolon erroneously inserted after the word "and" at the end of the subsection was 
added by Public Law 85-479. 

35 Public Law 85-479 (72 Stat. 276) (1958). sec. 4, added new subsec. 123 d. which was 
amended and restated by sec. 1 of PubHc Law 93-485 (88 Stat. 1460). Sec. 2 of Public Law 
93-485 provided that "This Act shall apply to proposed agreements for cooperation and to 
proposed amendments to agreements for cooperation hereafter submitted to the Congress." 



271 

''Sec. 125.^^ Cooperation With Berlin.— The President may au- 
thorize the Commission to enter into agreements for cooperation with 
the Federal Republic of Germany in accordance with section 123, on 
behalf of Berlin, which for the purposes of this Act comprises those 
areas over which the Berlin Senate exercises jurisdiction (the United 
States, British, and French sectors) and the Commission may there- 
after cooperate with Berlin pursuant to sections 54 a, 57, 64, 82, 103, or 
104: Provided^ That the guaranties required by section 123 shall be 
made by Berlin with the approval of the allied commandants. 

"Chapter 12. Control of Information 

"Sec. 141. Policy. — It shall be the policy of the Commission to con- 
trol the dissemination and declassification of Restricted Data in such a 
manner as to assure the common defense and security. Consistent with 
such policy, the Commission shall be guided by the following 
principles : 

"a. Until effective and enforceable international safeguards against 
the use of atomic energy for destructive purposes have been established 
by an international arrangement, there shall be no exchange of Re- 
stricted Data with other nations except as authorized by section 144 ; 
and 

"b. The dissemination of scientific and technical information relat- 
ing to atomic energy should be permitted and encouraged so as to pro- 
vide that free interchange of ideas and criticism which is essential to 
scientific and industrial progress and public understanding and to 
enlarge the fund of technical information. 

"Sec. 142. Classification and Declassification of Restricted 
Data. — 

"a. The Commission shall from time to time determine the data, 
within the definition of Restricted Data, which can be published with- 
out imdue risk to the common defense and security and shall there- 
upon cause such data to be declassified and removed from the category 
of Restricted Data. 

"b. The Commission shall maintain a continuous review of Re- 
stricted Data and of any Classification Guides issued for the guidance 
of those in the atomic energy program with respect to the areas of 
Restricted Data which have been declassified in order to determine 
which information may be declassified and removed from the category 
of Restricted Data without undue risk to the common defense anii 
security. 

"c. In the case of Restricted Data which the Commission and the 
Department of Defense jointly determine to relate primarily to the 
military utilization of atomic weapons, the determination that such 
data may be published without constituting an unreasonable risk to 
the common defense and security^ shall be made by the Commission 
and the Department of Defense jointly, and if the Commission and 
the Department of Defense do not agree, the determination shall be 
made by the President. 

"d. The Commission shall remove from the Restricted Data cate- 
gory such data as the Commission and the Department of Defense 
jointly determine relates primarily to the military utilization of atomic 

3« Public Law 85-14 (71 Stat. 11) (1957). added sec. 125. 



272 

weapons and which the Commission and Department of Defense 
jointly determine can be adequately safeguarded as defense informa- 
tion: Provided^ however^ That no such data so removed from the 
Kestricted Data category shall be transmitted or otherwise made avail- 
able to any nation or regional defense organization, while such data 
remains defense information, except pursuant to an agreement for 
cooperation entered into in accordance with subsection 144 b. 

"e. The Commission shall remove from the Restricted Data category 
such information concerning the atomic energy programs of other na- 
tions as the Commission and the Director of Central Intelligence 
jointly determine to be necessary to carry out the provisions of section 
102(d) of the National Security Act of 1947, as amended, and can be 
adequately safeguarded as defense information. 

"Sec. 143. Department of Defense Participation. — The Commis- 
sion may authorize any of its employees, or employees of any contrac- 
tor, prospective contractor, licensee or prospective licensee of the 
Commission or any other person authorized access to Restricted Data 
by the Commission under subsections 145 b. and 145 c.^^ to permit any 
employee of an agency of the Department of Defense or of its contrac- 
tors, or any member of tho, Armed Forces to have access to Restricted 
Data required in the performance of his duties and so certified by the 
head of the appropriate agency of the Department of Defense or his 
designee : Provided^ hoioever, That the head of the appropriate agency 
of the Department of Defense or his designee has determined, in ac- 
cordance with the established personnel security procedures and stand- 
ards of such agency, that permitting the member or employee to have 
access to such Restricted Data will not endanger the common defense 
and security : And provided further, That the Secretary of Defense 
finds that the established personnel and other security procedures and 
standards of such agency are adequate and in reasonable conformity 
to the standards established by the Commission under section 145. 
"Sec. 144. International Cooperation. — 

"a. The President may authorize the Commission to cooperate with 
another nation and to communicate to that nation Restricted Data 
on — 

"(1) refining, purification, and subsequent treatment of source 
material ; 

" (2) civilian reactor development ; 

" ( 3 ) production of special nuclear material ; 

" (4) health and safety ; 

"(5) industrial and other applications of atomic energy for 
peaceful purposes ; and 

"(6) research and development relating to the foregoing: 
Provided, however, That no such cooperation shall involve the com- 
munication of Restricted Data relating to the design or fabrication of 
atomic weapons : And provided further, That the cooperation is under- 
taken pursuant to an agreement for cooperation entered into in 
accordance with section 123, or is undertaken pursuant to an agree- 
ment existing on the effective date of this Act.^^ 

37 Public Law 84-1006 (70 Stat. 1069) (1956), sec. 14, added the words "or any other 
person authorized access to Restricted Data by the Commission under subsection 145 b." 
Public Law 87-206 (75 Stat. 4715) (1»61), sec. 5, deleted the words "subsection 145 b," 
and substituted In lien thereof the words, "subsections 145 b. and 145 c". 

M Public Law 85-479 (72 Stat. 276) (1958), sec. 5, amended subsec. a. of sec. 144 by 
Inserting the word "civilian" before the words "reactor development" In clause (2) 
thereof. 



273 

"b.3^ The President may authorize the Department of Defense, with 
the assistance of the Commission, to cooperate with another nation or 
with a regional defense organization to which the United States is a 
party, and to communicate to that nation or organization such Re- 
stricted Data (including design information) as is necessary to — 
" ( 1 ) the development of defense plans ; 

"(2) the training of personnel in the employment of and de- 
fense against atomic weapons and other military applications of 
atomic energy ; 

"(3) the evaluation of the capabilities of potential enemies in 
the employment of atomic weapons and other military applica- 
tions of atomic energy ; and 

" (4) the development of compatible delivery systems for atomic 
weapons ; 
whenever the President determines that the proposed cooperation and 
the proposed communication of the Restricted Data will promote and 
will not constitute an unreasonable risk to the common defense and 
security, while such other nation or organization is participating with 
the United States pursuant to an international arrangement by sub- 
stantial and material contributions to the mutual defense and security : 
Provided^ however^ That the cooperation is undertaken pursuant to 
an agreement entered into in accordance with section 123. 

"c.*" In addition to the cooperation authorized in subsections 144 a. 
and 144 b., the President may authorize the Commission, with the 
assistance of the Department of Defense, to cooperate with another 
nation and — 

"(1) to exchange with that nation Restricted Data concerning 
atomic weapons: Provided^ That communication of such Re- 
stricted Data to that nation is necessary to improve its atomic 
w^eapon design, development, or fabrication capability and pro- 
vided that nation has made substantial progress in the develop- 
ment of atomic w^eapons ; and 

"(2) to conimunicate or exchange with that nation Restricted 

Data concerning research, development, or design, of military 

reactors, 

whenever the President determines that the proposed cooperation and 

the communication of the proposed Restricted Data will promote and 

will not constitute an unreasonable risk to the common defense and 

=9 Public Law 85-479 (72 Stat. 276) (1958), sec. 6, amended sec. 144 by substituting a 
new subsec. b. Before amendment subsea b. read as follows : 

^. "b. The President may authorize the Department of Defense, with the assistance of 
the Conimission, to cooperate with another nation or with a regional defense organization 
to which the United States Is a party, and to communicate to that nation or organization 
such Restricted Data as is necessary to — 

''(1) the development of defense plans ; 

"(2) the training of personnel in the employment of and defense against atomic 
weapons ; and 

"(3) the evaluation of the capabilities of potential enemies In the employment of 
atomic weapons, 
while such other nation or organization Is participating with the United States pursuant 
^^f^^cl^^^i'^"°°^L^'''"^r?^®?®°* ^^ substantial and material contributions to the mutual 
^y^^^tnll J'^^^^^i^-'.^I^^^i^^' 'fOM^ever, That no such cooperation shall involve com- 
^^oi-^^i'^?^ °^ Restricted Data relating to the design or fabrication of atomic weapons 
anrf^pffJ^ll 11^^^^ l^ external characteristics, including size, weight, and shape, yields 
dJ?« ^n fhnc^ .^o^^^^^l""^ employed In the delivery or use thereof but not Including any 
ment ?f npf!n^.o**^,°K^^ unless In the joint judgment of the Commission and the Depart- 
?r fflhrinPnln jf^^ii^^ ^**? ^"' °°* ^®^**^ Important Information concerning the design 
That throinnonoH^Jif ,°"''^!?^.''?'"P°°«"t« «' ^° atomic weapon: And provided furthir, 
with section 123.^' undertaken pursuant to an agreement entered into In accordance 

c. ind'd.^''' ^'''''' ^^"^^^ ^^2 ^^''^- 276) (1958). sec. 7. amended sec. 144 by adding subsecs. 



274 

security, while such other nation is participating with the United 
States pursuant to an international arrangement by substantial and 
material contributions to the mutual defense and security: Provided^ 
however^ That the cooperation is undertaken pursuant to an agreement 
entered into in accordance with section 123. 

U(^ 40 'pj^g President may authorize an agency of the United States 
to communicate in accordance with the terms and conditions of an 
agreement for cooperation arranged pursuant to subsection 144 a., b., 
or c, such Eestricted Data as is determined to be transmissible under 
the agreement for cooperation involved. 

"Sec. 145. Restrictions. — 

"a. No arrangement shall be made under section 31, no contract shall 
be made or continued in effect under section 41, and no license shall be 
issued under section 103 or 104, unless the person with whom such ar- 
rangement is made, the contractor or prospective contractor, or the 
prospective licensee agrees in writing not to permit any individual to 
have access to Restricted Data until the Civil Service Commission shall 
have made an investigation and report to the Commission on the char- 
acter, associations, and loyalty of such indi v^idual, and the Commission 
shall have determined that permitting such person to have access to 
Restricted Data will not endanger the common defense and security. 

"b. Except as authorized by the Commission or the General IManager 
upon a determination by the Commission or General IManager that 
such action is clearly consistent with the national interest, no individ- 
ual shall be employed by the Commission nor shall the Commission 
permit any individual to have access to Restricted Data until the Civil 
Service Commission shall have made an investigation and report to 
the Commission on the character, associations, and loyalty of such 
individual, and the Commission shall have determined that permitting 
such person to have access to Restricted Data will not endanger the 
common defense and security. 

******* 

"Chapter 17. Joint Committee on Atomic Energy 

[Repealed— 1977] '^ 



"Chapter 19. Miscellaneous 



"Sec. 251. Report to Congress. — ^The Commission shall submit to 
the Congress, in January ^^ of each year, a report concerning the activ- 
ities of the Commission. The Commission shall include in such report, 
and shall at such other times as it deems desirable submit to the Con- 
gress, such recommendations for additional legislation as the Com- 
mission deems necessary or desirable. 



*iSec. 302(a) of this Act. as added by PiibUc Law 05-110. repealed Chapter 17. For 
matters re^ardinc the reassignment of functions and responsibilities of the Joint Commit- 
tee, see Chapter 20. 

*2 Public Law 86-43 (73 Stat. 73) (1959). amended sec. 251 by deleting the words "and 
July" after the word "January". 



275 

"Chapter 20. Joint Committee on Atomic Energy Abolished; 
Functions and Responsibilities Reassigned''^ 

"Sec. 301. Joint Committee on Atomic Energy Abolished. — 
"a. The Joint Committee on Atomic Energy is abolished, 
"b. Any reference in any rule, resolution, or order of the Senate or 
the House of Representatives or in any law, regulation, or Executive 
order to the Joint Committee on Atomic Energy shall, on and after the 
date of enactment of this section, be considered as referring to the 
committees of the Senate and the House of Representatives which, 
under the rules of the Senate and the House, have jurisdiction over the 
subject matter of such reference. 

"c. All records, data, charts, and files of the Joint Committee on 
Atomic Energy are transferred to the committees of the Senate and 
House of Representatives which, under the rules of the Senate and the 
House, have jurisdiction over the subject matters to which such records, 
data, charts, and files relate. In the event that any record, data, chart, 
or file shall be within the jurisdiction of more than one committee, 
duplicate copies shall be provided upon request. 

"Sec. 302. Transfers of Certain Functions of the Joint Com- 
mittee ON Atomic Energy and Conforming Amendments to Certain 
Other Laws. — 

"a. Effective on the date of enactment of this section, chapter 17 of 
this Act is repealed. 

"b. Section 103 of the Atomic Energy Community Act of 1955, as 
amended, is repealed. 

"c. Section 3 of the Congressional Budget and Impoundment Con- 
trol Act of 1974 is amended by — 

" (1) striking the subsection designation ' (a) ' ; and 
"(2) repealing subsection (b). 
"d. Section 252(a)(3) of the Legislative Reorganization Act of 
1970 is repealed. 

"Sec. 303. Information ani:> Assistance to Congressional 
Committees. — 

"a. The Secretary of Energy and the Nuclear Regulatory Commis- 
sion shall keep the committees of the Senate and the House of Repre- 
sentatives which, under the rules of the Senate and the House, have 
jurisdiction over the functions of the Secretary or the Commission, 
fully and currently informed with respect to the activities of the Sec- 
retary and the Commission. 

"b. The Department of Defense and Depai*tment of State shall keep 
the committees of the Senate and the House of Representatives which, 
under the rules of the Senate and the House, have jurisdiction over 
national security considerations of nuclear energy, full and currently 
informed with respect to such matters within' the Department of 
Defense and Department of State relating to national security 
considerations of nuclear technology Avhich are within the jurisdiction 
of such committees. 

"c. Any Government agency shall funiish any information requested 
by the committees of the Senate and the House of Representatives 



« Chapter 20 was added by Public Law 95-110 (91 Stat. 884). 



276 

which, under the rules of the Senate and the House, have jurisdiction 
over the development, utilization, or application of nuclear energy, 
with respect to the activities or responsibilities of such agency in the 
field of nuclear energy which are within the jurisdiction of such 
committees. 

"d. The committees of the Senate and the House of Representatives 
Avhich, under the rules of the Senate and the House, have jurisdiction 
over the development, utilization, or application of nuclear energy, are 
authorized to utilize the services, information, facilities, and personnel 
of any Government agency which has activities or responsibilities in 
the field of nuclear energy which are within the jurisdiction of such 
committees: Provided^ however^ That any utilization of personnel by 
such committees shall be on a reimbursable basis and shall require, with 
respect to committees of the Senate, the prior written consent of the 
Committee on Rules and Administration, and with respect to commit- 
tees of the House of Representatives, the prior written consent of the 
Committee on House Administration." 



b. EURATOM Cooperation Act of 1958, as amended 

Public Law 85-846 [S. 4273], 72 Stat. 1084, approved August 28, 1958; as amended 
by Public Law 87-206, 75 Stat. 479, approved September 6, 1961; Public Law 
88-394, 78 Stat. 376, approved August 1, 1964; Public Law 90-190, 81 Stat. 578, 
approved December 14, 1967; and by Public Law 93-88, 87 Stat. 296, approved 
August 14, 1973 

AN ACT To provide for cooperation with the European Atomic Energy 

Community. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "EURATOM Cooperation Act of 1958". 

Sec. 2. As used in this Act — 

(a) "The Community" means the European Atomic Energy Com- 
munity (EURATOM). 

(b) The "Commission" means the Atomic Energy Commission, as 
established by the Atomic Energy Act of 1954, as amended. 

(c) "Joint program" means the cooperative program established by 
the Community and the United States and carried out in accordance 
with the provisions of an agreement for cooperation entered into pur- 
suant to the provisions of section 123 of the Atomic Energy Act of 
1954, as amended, to bring into operation in the territory of the mem- 
bers of the Community powerplants using nuclear reactors of types 
selected by the Commission and the Community, having as a goal a 
total installed capacity of approximately one million kilowatts of elec- 
tricity by December 31, 1963, except that two reactors may be selected 
to be in operation by December 31, 1965. 

(d) All other terms used in this Act shall have the same meaning as 
terms described in section 11 of the Atomic Energy Act of 1954, as 
amended. 

Sec. 3. There is hereby authorized to be appropriated to the Com- 
mission, in accordance with the provisions of section 261(a)(2) of 
the Atomic Energy Act of 1954, as amended, the sum of $3,000,000 * 
as an initial authorization for fiscal year 1959 for use in a cooperative 
program of research and development in connection with the types of 
reactors selected by the Commission and the Community under the 
joint program. The Commission may enter into contracts for such 
periods as it deems necessary, but in no event to exceed five years, for 
the purpose of conducting the research and development program au- 
thorized by this section : Provided^ That the Conomimity authorizes an 
equivalent amount for use in the cooperative program of research and 
development. 

Sec. 4. The Commission is authorized, within limits of amounts 
which may hereafter be authorized to be appropriated in accordance 

1 Public Law 86-50 (sec. 109), Public Law 87-701 (sec. 109). Public Law 88-72 (sec. 
103). Public Law 88-332 (sec. 101(a)), and Public Law 89-32 (sec. 101), authorized 
appropriation of an additional 17,000,000, $5,000,000, $7,500,000. $3,000,000, and 
$3,000,000, respectively. 

(277) 



278 

with the provisions of section 261(a) (2) of the Atomic Energy Act 
of 1954, as amended, to make guarantee contracts which shall in the 
aggregate not exceed a total contingent liability of $90,000,000 designed 
to assure that the charges to an operator of a reactor constructed under 
the joint program for fabricating, processing, and transporting fuel 
will be no greater than would result under the fuel fabricating and fuel 
life guarantees which the Commission shall establish for such re- 
actor. Within the limits of such amoimts, the Commission is author- 
ized to make contracts under this section, without regard to the pro- 
visions of sections 3679 and 3709 of the Revised Statutes, as amended, 
for such periods of time as it determines to be necessary : Provided^ 
however^ That no such contracts may extend for a period longer than 
that necessary to cover fuel loaded into a reactor constructed under 
the joint program during the first ten years of the reactor operation or 
prior to December 31, 1973 (or December 31, 1975, for not more than 
two reactors selected under section 2(c)), whichever is earlier. In 
establishing criteria for the selection of projects and in entering into 
such guaranteee contracts, the Commission shall be guided by, but 
not limited to, the following principles : 

(a) The Commission shall encourage a strong and competitive 
atomic equipment manufacturing industry in the United States de- 
signed to provide diversified sources of supply for reactor parts and 
reactor fuel elements under the joint program ; 

(b) The guarantee shall be consistent with the provisions of this 
Act and of Attachment A to the Memorandum of Understanding be- 
tween the Government of the United States and the Community, 
signed in Brussels on May 29, 1958, and in Washington, District of 
Columbia, on June 12, 1958, and transmitted to Congress on June 23, 
1958; 

(c) The Commission shall establish and publish criteria for com- 
puting the maximum fuel element charge and minimum fuel element 
life to be guaranteed by the manufacturer as a basis for inviting and 
evaluating proposals.' 

(d) The guarantee by the manufacturer shall be as favorable as any 
other guarantee offered by the manufacturer for any comparable fuel 
element within a reasonable time period ; and 

(e) The Commission shall obtain a royalty-free, nonexclusive, irrev- 
ocable license for governmental purposes to any patents on inven- 
tions or discoveries made or conceived by the manufacturer in the 
course of development or fabrication of fuel elements during the period 
covered by the Commission's guarantee. 

Sec. 5. Pursuant to the provisions of section 54 of the Atomic En- 
ergy Act of 1954, as amended, there is hereby authorized for sale or 
lease to the Community — 

an amount of contained uranium 235 which does not exceed that 
necessary to support the fuel cycle of power reactors located 
within the Community having a total installed capacity of 
thirty-five thousand megawatts of electric energy, together with 
twenty-five thousand kilograms of contained uranium 235 for 
other purposes ; ' 

"Public Law 87-206 (T5 Stat 475) (1961), amended section 4(c). Prior to amendment 
It read : "The commission shall establish and publish minimum levels of fuel element cost 
and life to be guaranteed by the manufacturer as a basis for Inviting and evaluating 
proposals." 

•Public Law 93-88 (87 Stat 296) (1973), amended this paragraph. Previously, It 
read "two hundred fifteen thousand kilograms of contained uranium 235 ;". 



279 

one thousand five hundred kilograms of plutonium; and thirty 
kilograms of uranium 233 ; 
in accordance with the provisions of an agreement or agreements for 
cooperation bet\yeen the Government of the United States and the 
Community entered into pursuant to the provisions of section 123 of 
the Atomic Energy Act of 1954, as amended : Provided, That the Gov- 
ernment of the United States obtains the equivalent of a first lien on 
any such material sold to the Community for which payment is not 
made in full at the time of transfer. The'^Commission may enter into 
contracts to provide, after December 31, 1968, for the producing or 
enriching of all, or part of, the above-mentioned contained uranium 
235 pursuant to the provisions of subsection 161 v. (B) of said Act, as 
amended in lieu of sale or lease thereof.* 

Sec. 6. (a) The Atomic Energy Commission is authorized to pur- 
chase or otherwise acquire from the Community special nuclear mate- 
rial or any interest therein from reactors constructed under the joint 
program in accordance with the terms of an agreement for coopera- 
tion entered into pursuant to the provisions of section 123 of the 
Atomic Energy Act of 1954, as amended : Provided, That neither plu- 
tonium nor uranium 233 nor any interest therein shall be acquired un- 
der this section in excess of the total quantities authorized by law. The 
Commission is hereby authorized to acquire from the Community 
pursuant to this section up to four thousand one hundred kilograms of 
plutonium for use only for peaceful purposes. 

(b) Any contract made under the provisions of this section to 
acquire plutonium or any interest therein may be at such prices and 
for such period of time as the Commission may deem necessary : Pro- 
vided, That with respect to plutonium produced in any reactor con- 
structed under the joint program, no such contract shall be for a 
period greater than ten years of operation of such reactors or Decem- 
ber 31, 1973 (or Decemlber 31, 1975, for not more than two reactors 
selected under section 2 (c)), whichever is earlier: And provided 
further, That no such contract shall provide for compensation or the 
payment of a purchase price in excess of the Commission's established 
price in effect at the time of delivery to the Commission for such 
material as fuel in a nuclear reactor. 

(c) Any contract made under the provisions of this section to 
acquire uranium enriched in the isotope uranium 235 may be at such 
price and for such period of time as the Commission may deem neces- 
sary : Provided, That no such contract shall be for a period of time 
extending beyond the terminal date of the agreement for cooperation 
with the Community or provide for the acquisition of uranium en- 
riched in the isotope U-235 in excess of the quantities of such material 

* Public Law 90-190 (81 Stat 675) (1967), sec. 13, amended sec. 5 by substituting a 
complete new section. Before amendment, sec. 5 read as follows : 

"Sec. 5. Pursuant to the proyisions of section 54 of the Atomic Energy Act of 1954, 
as amended, there is hereby authorized for sale or lease to the Community : 

Seventy thousand kilograms of contained uranium 235 

Five hundred Ivilograms of plutonium 

Thirty Ivilograms of uranium 233 
In accordance with the provisions of an agreement or agreements for cooperation be- 
tween the Government of the United States and the Community entered into pursuant to 
the provisions of section 123 of the Atomic Energy Act of 1954. as amended : Provided, 
That the Government of the United States obtains the equivalent of a first lien on any 
such material sold to the Community for which payment is not made in full at the time of 
transfer." 

,. ?tr- ? ''-^'^ earlier been amended by Public Law 88-394 (78 Stat. 376), sec. 5, and by 
Publio Law 87-206 (7.^. Stat. 475). sec. 19. 



280 

that have been distributed to the Community by the Commission less 
the quantity consumed in the nuclear reactors involved in the joint 
program : And provided further^ That no such contract shall provide 
tor compensation or the payment of a purchase price in excess of the 
Atomic Energy Commission's established charges for such material 
in effect at the time delivery is made to the Commission. 

(d) Any contract made under this section for the purchase of spe- 
cial nuclear material or any interest therein may be made without 
regard to the provisions of section 3679 of the Kevised Statutes, as 
amended. 

(e) Any contract made under this section may be made without 
regard to section 3709 of the Kevised Statutes, as amended, upon certi- 
fication by the Commission that such action is necessary in the interest 
of the common defense and security, or upon a showing by the Com- 
mission that advertising is not reasonably practicable. 

Sec. 7. The Government of the United States of America shall not 
be liable for any damages or third party liability arising out of or 
resulting from the joint program: Provided^ however^ That nothing 
in this section shall deprive any person of any rights under section 
170 of the Atomic Energy Act of 1954, as amended. And provided 
further^ That nothing in this section shall apply to arrangements 
made by the Commission under a research and development program 
authorized in section 3.^ The Government of the United States shall 
take such steps as may be necessary, including appropriate disclaimer 
or indemnity arrangements, in order to carry out the provisions of 
this section. 



•Proviso added by Public Law 87-206 (75 Stat. 475) (1961). 



c. EURATOM Resolution 

Senate Concurrent Resolution 116, 85th Congress, 2d Session, passed 
August 23, 1958 

Whereas the United States of America has instituted a program of 
international cooperation to make available to cooperating nations 
the benefits of peaceful applications of atomic energy ; and 

Whereas the United States of America and the European Atomic 
Energy Community (EURATOM) have entered into an agreement 
providing for cooperation in programs designed to advance the peace- 
ful application of atomic energy : Therefore be it 

Resolved hy the Senate {the House of Representatives concurring)^ 
That pursuant to the provisions of section 11(1) and 124 of the 
Atomic Energy Act of 1954, as amended, the agreement between the 
Government of the United States of America and the European 
Atomic Energy Community (EUEATOM), signed at Brussels on 
May 29, 1958, and at Washington on June 19, 1958, concerning co- 
operation between the parties in programs for the advancement of 
the peaceful application of atomic energy, be and hereby is approved. 
This resolution does not constitute approval or disapproval of the 
memorandum of understanding, or any other agreements which have 
not been formally approved or authorized by the Congress. 

(281) 



20-594 O - 78 - 19 



d. International Atomic Energy Agency Participation Act of 1957, 

as amended 

Partial text of Public Law 85-177 [H.R. 8992], 71 Stat. 453, approved August 28. 
1957; as amended by Public Law 85-795, 72 Stat. 959, approved August 28. 1958; 
and by Public Law 89-348, 79 Stat. 1310. approved November 8, 1965 

AN AC?T To provide for the appointment of representatives of the United States 
in the organs of the International Atomic Energy Agency, and to make other 
provisions with respect to the participation of the United States in that Agency, 
and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "International Atomic Energy Agency Participation 
Act of 1957". 

Sec. 2. (a) The President, by and with the advice and consent of the 
Senate, shall appoint a representative and a deputy representative of 
the United States to the International Atomic Energy Agency (here- 
inafter referred to as the "Agency") , who shall hold office at the pleas- 
ure of the President. Such representative and deputy representative 
shall represent the United States on the Board of Governors of the 
Agency, may represent the United States at the General Conference, 
and may serve ex officio as United States representative on any organ 
of that Agency, and shall perform such other functions in connection 
with the participation of the United States in the Agency as the Presi- 
dent may from time to time direct. 

(b) The President, by and with the advice and consent of the Sen- 
ate, may appoint or designate from time to time to attend a specified 
session or specified sessions of the General Conference of the Agency 
a representative of the United States and such number of alternates as 
he may determine consistent with the rules of procedure of the General 
Conference. 

(c) The President may also appoint or designate from time to time 
such other persons as he may deem necessary to represent the United 
States in the organs of the Agency. The President may designate any 
officer of the United States Government, whose appointment is subject 
to confirmation by the Senate, to act, without additional compensation, 
for temporary periods as the representative of the United States on 
the Board of Governors or to the General Conference of the Agency 
in the absence or disability of the representative and deputy repre- 
sentative appointed under section 2(a) or in lieu of such represent- 
atives in connection with a specified subject matter. 

(d) All persons appointed or designated in pursuance of authority 
contained in this section shall receive compensation at rates determined 
by the President upon the basis of duties to be performed but not in 
excess of rates authorized by sections 411 and 412 of the Foreign Serv- 
ice Act of 1946, as amended (22 U.S.C. 866, 867) , for Chiefs of Mission 

(282) 



283 

and Foreign Service officers occupying positions of equivalent impor- 
tance, except that no Member of the Senate or House of Representa- 
tives or officer of the United States who is designated under subsection 
(b) or subsection (c) of this section as a delegate or representative of 
the United States or as an alternate to attend any specified session or 
specified sessions of the General Conference shall be entitled to receive 
such compensation. Any person who receives compensation pursuant to 
the provisions of this subsection may be granted allowances and bene- 
fits not to exceed those received by Chiefs of Mission and Foreign 
Service officers occupying positions of equivalent importance. 

Sec. 3. The participation of the United States in the International 
Atomic Energy Agency shall be consistent with and in furtherance of 
the purposes of the Agency set forth in its Statute and the policy con- 
cerning the development, use, and control of atomic energy set forth 
in the Atomic Energy Act of 1954, as amended. [The President shall, 
from time to time as occasion may require, but not less than once each 
year, make reports to the Congress on the activities of the Interna- 
tional Atomic Energy Agency and on the participation of the United 
States therein.] ^ In addition to any other requirements of law, the 
Department of State and the Atomic Energy Commission shall keep 
the Joint Committee on Atomic Energy, the House Committee on 
Foreign Affairs, and the Senate Committee on Foreign Relations, as 
appropriate, currently informed with respect to the activities of the 
Agency and the participation of the United States therein. 

Sec. 4. The representatives provided for in section 2 hereof, when 
representing the United States in the organs of the Agency, shall, at 
all times, act in accordance with the instructions of the President, and 
such representatives shall, in accordance with such instructions, cast 
any and all votes under the Statute of the International Atomic En- 
ergy Agency. 

Sec. 5. There is hereby authorized to be appropriated annually to 
the Department of State, out of any money in the Treasury not other- 
wise appropriated, such sums as may be necessary for the payment by 
the United States of its share of the expenses of the International 
Atomic Energy Agency as apportioned by the Agency in accordance 
with paragraph (D) oi article XIV of the Statute of the Agency, and 
for all necessary salaries and expenses of the representatives provided 
for in section 2 hereof and of their appropriate staffs, including per- 
sonal services without regard to the civil service laws and the Classi- 
fication Act of 1949, as amended; travel expenses without regard to 
the Standardized Government Travel Regulations, as amended, the 
Travel Expense Act of 1949, as amended, and sectioi) 10 of the Act of 
March 3. 1933, as amended ; salaries as authorized by the Foreign Serv- 
ice Act of 1946, as amended, or as authorized by th^ Atomic Energy 
Act of 1954, as amended, and expenses and allowances of personnel 
and dependents as authorized by the Foreign Service Act of 1946, as 
amended ; services as authorized by section 15 of the Act of August 2, 
1946 (5 U.S.C. 55a) ; ^ translating and other services, by contract; hire 



iPnMIc Lqw 89-34.S f79 Stat. 1310). sec. 1(20). nmended Public Lf^vr 85-177 by re- 
pealing the requirement of a report to the Congress by the President not less than once each 
year on the activities of the International Atomic Energy Agencv and on the participation 
of the United States their-in 

a Public Law S9-554 (80 Stat. 416) codified section 15 of the Act of August 2. 1946. 
as 5 U.S.C. 3109. 



284 

of passenger motor vehicles and other local transportation ; printing 
and binding without regard to section II of the Act of March 1, 1919 
(44 U.S.C. Ill) ; official functions and courtesies; such sums as may 
be necessary to defray the expenses of United States participation in 
the Preparatory Commission for the Agency, established pursuant to 
annex I of the Statute of the Agency ; and such other expenses as may 
be authorized by the Secretary of State. 

Sec. 6. (a) Notwithstanding any other provision of law, Executive 
order or regulation, a Federal employee who, with the approval of the 
Federal agency, or the head of the department by which he is employed, 
leaves his position to enter the employ of the Agency shall not be 
considered for the purposes of the Civil Service Retirement Act, as 
amended, and the Federal Employees' Group Life Insurance Act of 
1954, as amended, as separated from his Federal position during such 
employment with the Agency but not to extend beyond the first three 
consecutive years of his entering the employ of the Agency : Provided^ 
(1) That he shall pay to the Civil Service Commission within ninety 
days from the date he is separated without prejudice from the Agency 
all necessary deductions and agency contributions for coverage under 
the Civil Service Retirement Act for the period of his employment by 
the Agency, and (2) That all deductions and agency contributions 
necessary for continued coverage under the Federal Employees' Group 
Life Insurance Act of 1954, as amended, shall be made during the term 
of his employment with the International Atomic Energy Agency. If 
such employee, within three years from the date of his employment 
with the Agency, and within ninety days from the date he is separated 
without prejudice from the Agency, applies to be restored to his Fed- 
eral position, he shall within thirty days of such application be re- 
stored to such position or to a position of like seniority, status and 
pay.' * . . 

(b) Notwithstanding any other provision of law. Executive order 
or regulation, any Presidential appointee or elected officer who leaves 
his position to enter, or who within ninety days after the termination 
of his position enters, the employ of the Agency, shall be entitled to 
the coverage and benefits of the Civil Service Retirement Act, as 
amended, and the Federal Employees' Group Life Insurance Act of 
1954, as amended, but not beyond the earlier of either the termination 
of his employment with the Agency or the expiration of three years 
from the date he entered employment with the Agency : Provided^ (1) 
That he shall pay to the Civil Service Commission within ninety days 
from the date he is separated without prejudice from the Agency all 
necessary deductions and agency contributions for coverage under the 
Civil Service Retirement Act for the period of his employment by the 
Agency and (2) That all deductions and agency contributions neces- 
sary for continued coverage under the Federal Employees' Group Life 
Insurance Act of 1954, as amended, shall be made during the term of 
his employment with the Agency. 

« Sec. 7 of Public Law 85-795 (72 Stat. 959), aDproved Aug. 28, 1958, repealed sec. 6(a), 
"except that it shall be considered to remain in effect with respect to any employee subject 
thereto who is serving as an employee of the International Atomic Energy Agency on the 
date of enactment of this Act and who does not make the election referred to in section 6 
and for the purposes of any rights and benefits rested thereunder prior to such date." 



b 



I 



I 



285 

(c) The President is authorized to prescribe such regulations as 
may be necessary to carry out the provisions of this section and to 
protect the retirement, insurance and such other civil service rights 
and privileges as the President may find appropriate. 

******* 

Sec. 8. In the event of an amendment to the Statute of the Agency 
being adopted in accordance with article XVIII-C of the Statute to 
which the Senate by formal vote shall refuse its advice and consent, 
upon notification by the Senate to the President of such refusal to ad- 
vise and consent, all further authority under sections 2, 3, 4, and 5 of 
this Act, as amended, shall terminate: Provided, however, That the 
Secretary of State, under such regulations as the President shall 
promulgate, shall have the necessary authority to complete the prompt 
and orderly settlement of obligations and commitments to the Agency 
already incurred and pay salaries, allowances, travel expenses, and 
other expenses required for a prompt and orderly termination of 
United States participation in the Agency: And provided further, 
That the representative and the deputy representative of the United 
States to the Agency, and such other officers or employees representing 
the United States in the Agency, under such regulations as the Presi- 
dent shall promulgate, shall retain their authority under this Act for 
such time as may be necessary to complete the settlement of matters 
arising out of the United States participation in the Agency. 



I 



e. Executive Orders Concerning International Atomic Cooperation 

(1) Executive Order 11057, October 18, 1962, 27 F.R. 10289, 3 CFR, 
1959-63 Comp., p. 648 

AUTHORIZATION FOR THE COMMUNICATION OF RESTMCTED DATA BY THE 

DEPARTMENT OF STATE 

By virtue of the authority vested in me by the Atomic Energy Act 
of 1954, as amended (hereinafter referred to as the Act ; 42 U.S.C. 2011 
et seq.) , and as President of the United States, it is ordered as follows : 

The Department of State is hereby authorized to communicate, in 
accordance with the terms and conditions of any agreement for cooper- 
ation arranged pursuant to subsection 144b of the Act (42 U.S.C. 2164 
(b)), such Restricted Data and data removed from the Restricted 
Data category under subsection 142d of the Act (42 U.S.C. 2162(d) ) 
as is determined 

(i) by the President, pursuant to the provisions of the Act, or 
(ii) by the Atomic Energy Commission and the Department of 
Defense, jointly pursuant to the provisions of Executive Order 
No. 10841, as amended, 
to be transmissible under the agreement for cooperation involved. 
Such communications shall be effected through mechanisms estab- 
lished by the Department of State in accordance with the terms and 
conditions of the agreement for cooperation involved : Provided^ that 
no such communication shall be made by the Department of State until 
the proposed communication has been authorized either in accordance 
with proctdures, adopted by the Atomic Energy Commission and the 
Department of Defense and applicable to conduct of programs for 
cooperation by those agencies, or in accordance with procedures ap- 
proved by the Atomic Energy Commission and the Department of De- 
fense and applicable to conduct of programs for cooperation by the 
Department of State. 

(286) 



(2) Executive Order 10899, December 9, 1960, 25 F.R. 12729, 3 CFR, 
1959-63 Comp., p. 427 

AUTHORIZATION FOR THE COMMUNICATION OF RESTRICTED DATA BY THE 
CENTRAL INTELLIGENCE AGENCY 

By virtue of the authority vested in me by the Atomic Energy Act 
of 1954, as amended (hereinafter referred to as the Act; 42 U.S.C. 
2011 et seq.), and as President of the United States, it is ordered as 
follows : 

The Central Intelligence Agency is hereby authorized to communi- 
cate for intelligence purposes, in accordance with the terms and condi- 
tions of an}^ agreement for cooperation arranged pursuant to subsec- 
tions 144 a, b, or c of the Act (42 U.S.C. 2162 (a), (b), or (c) ), such 
Restricted Data and data removed from the Restricted Data category 
under subsection 142d of the Act (42 U.S.C. 2162(d) ) as is determined 
(i) by the President, pursuant to the provisions of the Act, or 
(ii) by the Atomic Energy Commission and the Department of 

Defense, jointly pursuant to the provisions of Executive Order 

No. 10841, 
to be transmissible under the agreement for cooperation involved. 
Such communications shall be effected through mechanisms established 
by the Central Intelligence Agency in accordance with the terms and 
conditions of the agreement for cooperation involved: Provided^ that 
no such communication shall be made by the Central Intelligence 
Agency until the proposed communication has been authorized either 
in accordance with procedures adopted by the Atomic Energy Com- 
mission and the Department of Defense and applicable to conduct of 
programs for cooperation by those agencies, or in accordance with 
procedures approved by the Atomic Energy Commission and the 
Department of Defense and applicable to conduct of programs for co- 
operation by the Central Intelligence Agency. 

(287) 



(3) Executive Order 10841, September 30, 1959, 24 F.R. 7941, 3 CFR, 
1959-63 Comp., p. 375; as amended by Executive Order 10958, 
August 10, 1961, 26 F.R. 7315, 3 CFR 1959-63 Comp., p. 482 

PROVIDING FOR THE CARRYING OUT OF CERTAIN PROVISIONS OF THE ATOMIC 
ENERGY ACT OF 1954. AS AMENDED, RELATING TO INTERNATIONAL CO- 
OPERATION 

By virtue of the authority vested in me by the Atomic Energy Act 
of 1954, as amended (42 U.S.C. 2011 et seq.), herein referred to as the 
Act, and section 301 of title 3 of the United States Code, and as Pres- 
ident of the United States, it is ordered as follows : 

Section 1. Whenever the President, pursuant to section 123 of the 
Act, has approved and authorized the execution of a proposed agree- 
ment providing for cooperation pursuant to section 91c, 144a, 144b, or 
144c of the Act (42 U.S.C. 2121(c), 2164(a), 2164(b), 2164(c))j such 
approval and authorization by the President shall constitute his au- 
thorization to cooperate to the extent provided for in the agreement 
and in the manner provided for in section 91c, 144a, 144b, or 144c, as 
pertinent. In respect of sections 91c, 144b, and 144c, authorizations by 
the President to cooperate shall be subject to the requirements of sec- 
tion 123d of the Act and shall also be subjected to appropriate deter- 
minations made pursuant to section 2 of this order. 

Sec. 2. (a) The Secretary of Defense and the Atomic Energy Com- 
mission are hereby designated and empowered to exercise jointly, after 
consulta/tion with executive agencies as may be appropriate, the fol- 
lowing described authority without the approval, ratification, or other 
action of the President : 

(1) The authority vested in the President by section 91c of the Act 
to determine that the proposed cooperation and each proposed transfer 
arrangement referred to in that section will promote and will not con- 
stitute an unreasonable risk to the common defense and security. 

(2) The authority vested in the President by section 144b of the Act 
to determine that the proposed cooperation and the proposed communi- 
cation of Eestricted Data referred to in that section will promote and 
will not constitute an unreasonable risk to the common defense and 
security; Provided^ that each determination made under this para- 
graph shall be referred to the President and, unless disapproved by 
him, shall become effective fifteen days after such referral or at such 
later time as may be specified in the determination.^ 

(3) The authority vested in the President by section 144c the Act to 
determine that the proposed cooperation and the communication of the 
proposed Eestricted Data referred to in that section will promote and 
will not constitute an unreasonable risk to the common defense and 
security. 

* This provision was «dde4 bj Executtre Order 10958, Augnat 10, 1961, 26 F.R. 7815. 

(288) 



289 

(b) Whenever the Secretary of Defense and the Atomic Energy 
Commission are unable to agree upon a joint determination under the 
provisions of subsection {&) of this section, the recommendations of 
each of them, together witn the recommendations of other agencies 
concerned, shall be referred to the President, and the determination 
shall be made by the President. 

Sec. 3. This order shall not be construed as delegating the function 
vested in the President by section 91c of the Act of approving pro- 
grams proposed under that section. 

Sec. 4. (a) The functions of negotiating and entering into interna- 
tional agreements under the Act shall be performed by or under the 
authority of the Secretary of State. 

(b) International cooperation under the Act shall be subject to the 
responsibilities of the Secretary of State with respect to the foreign 
policy of the United States pertinent thereto. 



I 



I 



2. Energy Policy and Conservation Act^ 

Partial text of Public Law 94-163 [S. 622], 89 Stat. 871, approved 
December 22, 1975 

AN ACT To increase domestic energy supplies and availability; to restrain 
energy demand ; to prepare for energy emergencies ; and for other purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "Energy Policy and Conservation Act". 



^ STATEMENT OF PURPOSES 

Sec. 2. The purposes of this Act are — 

(1) to grant specific standby authority to the President, subject 
to congressional review, to impose rationing, to reduce demand 
for energy through the implementation of energy conservation 
plans, and to fulfill obligations of the United States under the 
international energy program ; 

(2) to provide for the creation of a Strategic Petroleum Reserve 
capable of reducing the impact of severe energy supply inter- 
ruptions ; 

(3) to increase the supply of fossil fuels in the United States, 
through price incentives and production requirements ; 

(4) to conserve energy supplies through energy conservation 
programs, and, where necessary, the regulation of certain energy 
uses; 

(5) to provide for improved energy efficiency of motor vehicles, 
major appliances, and certain other consumer products; 

(6) to reduce the demand for petroleum products and natural 
gas through programs designed to provide greater availability 
and use of this Nation's abundant coal resources ; and 

(7) to provide a means for verification of energy data to assure 
the reliability of energy data. 



DEFINITIONS 

Sec. 3. As used in this Act : 

(1) The term "Administrator" means the Administrator of the 
Federal Energy Administration. 

(2) The term "person" includes (A) any individual, (B) any corpo- 
ration, company, association, firm, partnership, society, trust, joint 
venture, or joint stock company and (C) the government and any 

»42 U.S.C. 6201-6422. 

(290) 



291 

agency of the United States or any State or political subdivision 
thereof. 

(3) The term "petroleum product" means crude oil residual fuel 
oil, or any refined petroleum product (including any natural liquid 
and any natural gas liquid product) . 

(4) The term "State" means a State, the District of Columbia., 
Puerto Rico, or any territory or possession of the United States. 

(5) The term "United States" when used in the geographical sense 
means all of the States and the Outer Continental Shelf. 

(6) The term "Outer Continental Shelf" has the same meaning as 
such term has under section 2 of the Outer Continental Shelf Lands 
Act (43U.S.C.1331). 

(7) The term "international energy program" means the Agree- 
ment on an International Energy Program, signed by the United 
States on November 18, 1974, including (A) the annex entitled "Emer- 
gency Reserves",^ (B) any amendment to such Agreement which in- 
cludes another nation as a party to such Agreement, and (C) any 
technical or clerical amendment to such Agreement. 

(8) The term "severe energy supply interruption" means a national 
energy supply shortage which the President determines — 

(A) is, or is likely to be, of significant scope and duration, and 
of an emergency nature ; 

(B) may cause major adverse impact on national safety or the 
national economy ; and 

(C) results, or is likely to result, from an interruption in the 
supply of imported petroleum products, or from sabotage or an 
act of God. 



DOMESTIC USE OF ENERGY SUPPLIES AND RELATED MATERIALS AND 

EQUIPMENT 

Sec. 103. (a) The President may, by rule, under such terms and 
conditions as he determines to be appropriate and necessary to carry 
out the purposes of this Act, restrict exports of — 

(1) coal, petroleum products, natural gas, or petrochemical 
feedstocks, and 

(2) supplies of materials or equipment which he determines to 
be necessary (A) to maintain or further exploration, production, 
refining, or transportation of energy supplies, or (B) for the 
construction or maintenance of energy facilities within the United 
States. 

(b) (1) The President shall exercise the authority provided for in 
subsection (a) to promulgate a rule prohibiting the export of crude oil 
and natural gas produced in the United States, except that the Presi- 
dent may, pursuant to paragraph (2), exempt from such prohibition 
such crude oil or natural gas exports which he determines to be con- 
sistent with the national interest and the purposes of this Act. 

(2) Exemptions from any rule prohibiting crude oil or natural gas 
exports shall be included in such rule or provided for in an amendment 
thereto and may be based on the purpose for export, class of seller or 
purchaser, country of destination, or any other reasonable classification 

2 For text, see Vol. Ill, Sec. I. 



292 

or basis as the President determines to be appropriate and consistent 
with the national interest and the purposes of this Act. 

(c) In order to implement any rule promulgated under subsection 
(a) of this section, the President may request and, if so, the Secretary 
of Commerce shall, pursuant to the procedures established by the 
Export Administration Act of 1969 ^ (but without regard to the phrase 
"and to reduce the serious inflationary impact of foreign demand" in 
section 3(2) (A) of such Act *) , impose such restrictions as specified in 
any rule under subsection (a) on exports of coal, petroleum products, 
natural gas, or petrochemical feedstocks, and such supplies of mate- 
rials and equipment. 

(d) Any finding by the President pursuant to subsection (a) or (b) 
and any action taken by the Secretary of Commerce pursuant thereto 
shall take into account the national interest as related to the need to 
leave uninterrupted or unimpaired — 

(1) exchanges in similar quantity for convenience or increased 
efficiency of transportation with persons or the government of a 
foreign state. 

(2) temporary exports for convenience or increased efficiency 
of transportation across parts of an adjacent foreign state which 
exports reenter the United States, and 

(3) the historical trading relations of the United States with 
Canada and Mexico. 

(e) (1) The provisions of subchapter II of chapter 5 of title 5, 
United States Code, shall apply with respect to the promulgation of 
any rule pursuant to this section, except that the President may waive 
the requirement pertaining to the notice of proposed rulemaking or 
period for comment only if he finds that compliance with such require- 
ments may seriously impair his ability to impose effective and timely 
prohibitions on exports. 

(2) In the event such notice and comment period are waived with 
respect to a rule promulgated under this section, the President shall 
afford interested persons an opportunity to comment on any such rule 
at the earliest practicable date thereafter. 

(3) If the President determines to request the Secretary of Com- 
merce to impose specified restrictions as provided for in subsection (c) , 
the enforcement and penalty provisions of the Export Administration 
Act of 1969 shall apply, in lieu of this Act, to any violation of such 
restrictions. 

(f) The President shall submit quarterly reports to the Congress 
concerning the administration of this section and any findings made 
pursuant to subsection (a) or (b). 



Part B — Authorities With Respect to International 
Energy Program 

international oil allocation 

Sec. 251. (a) The President may, by rule, require that persons 
engaged in producing, transporting, refining, distributing, or storing 
petroleum products, take such action as he determines to be necessary 

» 50 U.S.C. App. 2401 note. 
* 60 U.S.C. App. 2402. 



293 

for implementation of the obligations of the United States imder 
chapters III and IV of the international energy program insofar as 
such obligations relate to the international allocation of petroleum 
products. Allocation under such rule shall be in such amounts and at 
such prices as are specified in (or determined in a manner prescribed 
by) such rule. Such rule may apply to any petroleum product owned 
or controlled by any person described in the first sentence of this 
subsection who is subject to the jurisdiction of the United States, 
including any petroleum product destined, directly or indirectly, for 
import into the United States or any foreign country, or produced 
in the United States. Subject to subsection (b) (2), such a rule shall 
remain in effect until amended or rescinded by the President. 

(b) (1) No rule under subsection (a) may take effect unless the 
President — 

(A) has transmitted such rule to the Congress ; 

(B) has found that putting such rule into effect is required in 
order to fulfill obligations of the United States under the inter- 
national energy program ; and 

(C) has transmitted such finding to the Congress, together with 
a statement of the effective date and manner for exercise of such 
rule. 

(2) No rule under subsection (b) may be put into effect or remain 
in effect after the expiration of 12 months after the date such rule 
was transmitted to Congress under paragraph (1) (A) . 

(c)(1) Any rule under this section shall be consistent with the 
attainment, to the maximum extent practicable, of the objectives 
specified in section 4(b) (1) of the Emergency Petroleum Allocation 
Act of 1973.^ 

(2) No officer or agency of the United States shall have any author- 
ity, other than authority under this section, to require that petroleum 
products be allocated to other countries for the purpose of implementa- 
tion of the obligations of the United States under the international 
energy program. 

(d) Neither section 103 of this Act nor section 28 (u) of the Mineral 
Leasing Act of 1920 ^ shall preclude the allocation and export, to other 
countries in accordance with this section, of petroleum products pro- 
duced in the United States. 

INTERNATIONAL VOLUNTARY AGREEMENTS 

Sec. 252. (a) Effective 90 days after the date of enactment of this 
xA^ct, the requirements of this section shall be the sole procedures 
applicable to — 

(1) the development or carrjdng out of voluntary agreements 
and plans of action to implement the allocation and information 
provisions of the international energy program, and 

(2) the availability of immunity from the antitrust laws with 
respect to the development or carrying out of such voluntary 
agreements and plans of action. 

(b) The Administrator, with the approval of the Attorney General, 
after each of them has consulted with the Federal Trade Commission 
and the Secretary of State, shall prescribe, by rule, standards and 
procedures by which persons engaged in the business of producing, 

B 15 U.S.C. 753. 
•30U.S.C. 185.^ 



294 

transporting, refining, distributing, or storing petroleum products 
may develop and carry out voluntary agreements, and plans of action, 
which are required to implement the allocation and information pro- 
visions of the international energy program. 

(c) The standards and procedures prescribed under subsection (b) 
shall include the following requirements : 

(1) (A) (i) Except as provided in clause (ii) or (iii) of this 
subparagraph, meetings held to develop or carry out a voluntary 
agreement or plan of action under this subsection shall permit 
attendance by representatives of committees of Congress and 
interested persons, including all interested segments of the petro- 
leum industry, consumers, and the public; shall be preceded by 
timely and adequate notice with identification of the agenda of 
such meeting to the Attorney General, the Federal Trade Com- 
mission, committees of Congress, and (except during an inter- 
national energy supply emergency with respect to meetings to 
carry out a voluntary agreement or to develop or carry out a plan 
of action) the public; and shall be initiated and chaired by a 
regular full-time Federal employee. 

(ii) Meetings of bodies created by the International Energy 
Agency established by the international energ\^ program need not 
be open to interested persons and need not be initiated and chaired 
by a regular full-time Federal employee. 

(iii) The President, in consultation with the Administrator, 
the Secretary of State, and the Attorney General, may determine 
that a meeting held to carry out a voluntary agreement or to de- 
velop or carr\^ out a plan of action shall not be open to interested 
persons or that attendance by interested persons may be limited, 
if the President finds that a wider disclosure would be detri- 
mental to the foreign policy interests of the United States. 

(B) No meetings may be held to develop or carry out a volun- 
tary agreement or plan of action under this section unless a regu- 
lar full-time Federal employee is present. 

(2) Interested persons permitted to attend such a meeting shall 
be afforded an opportunity to present, in writing and orally, 
data, views, and arguments at such meetings, subject to any rea- 
sonable limitations with respect to the manner of presentation of 
data, views, and arguments as the Administrator may impose. 

(3) A full and complete record and where practicable a 
verbatim transcript, shall be kept of any meeting held, and a full 
and complete record shall be kept of any communication (other 
than in a meeting) made, between or among participants or poten- 
tial participants, to develop, or carry out a voluntary agreement 
or a plan of action under this section. Such record or transcript 
shall be deposited, together with any agreement resulting there- 
from, with the Administrator, and shall be available to the Attor- 
ney General and the Federal Trade Commission. Such records or 
transcripts shall be available for public inspection and copying in 
accordance with section 552 of title 5, United States Code ; except 
that (A) matter may not be withheld from disclosure under sec- 
tion 552(b) of such title on grounds other than the grounds speci- 
fied in section 552 (b) (1) , (b) (3), or so much of (b) (4) as relates 



295 

to trade secrets; and (B) in the exercise of authority under sec- 
tion 552(b) (1), the President shall consult with the Secretary of 
State, the Administrator, and the Attorney General with respect 
to questions relating to the foreign policy interests of the United 
States. 

(4) No provision of his section may be exercised so as to prevent 
representatives of committees of Congress from attending meet- 
ings to which this section applies, or from having access to any 
transcripts, records, and agreements kept or made under this 
section. 

(d) (1) The Attorney General and the Federal Trade Commission 
shall participate from the beginning in the development, and when 
practicable, in the carrying out of voluntary agreements and plans of 
action authorized under this section. Each may propose any alternative 
which would avoid or overcome, to the greatest extent practicable, 
possible anticompetitive effects while achieving substantially the pur- 
poses of this part. A voluntary agreement or plan of action under this 
section may not be carried out unless approved by the Attorney Gen- 
eral, after consultation with the Federal Trade Commission. Prior to 
the expiration of the period determined under paragraph (2), the 
Federal Trade Commission shall transmit to the Attorney General its 
views as to whether such an agreement or plan of action should be 
approved, and shall publish such views in the Federal Register. The 
Attorney General, in consultation with the Federal Trade Commission, 
the Secretary of State, and the Administrator, shall have the right to 
review, amend, modify, disapprove, or revoke, on his own motion or 
upon the request of the Federal Trade Commission or any interested 
person, any voluntary agreement or plan of action at any time, and, if 
revoked, thereby withdraw prospectively any immunity which may be 
conferred by subsection (f) or (k). 

(2) Any voluntary agreement or plan of action entered into pur- 
suant to this section shall be submitted in writing to the Attorney 
General and the Federal Trade Commission 20 days before being 
implemented ; except that during an international energy supply emer- 
gency, the Administrator, subject to approval of the Attorney General, 
may reduce such 20-day period. Any such agreement or plan of 
action shall be available for public inspection and copying, except 
that a plan of action shall be so available only to the extent to which 
records or transcripts are so available as provided in the last sentence 
of subsection (c)(3). Any action taken pursuant to such voluntary 
agreement or plan of action shall be reported to the Attorney General 
and the Federal Trade Commission pursuant to such regulations as 
shall be prescribed under paragraph (3) and (4) of subsection (e). 

(3) A plan of action may not be approved by the Attorney General 
under this subsection unless such plan (A) describes the types of 
substantive actions which may be taken under the plan, and (B) is as 
specific in its description of proposed substantive actions as is reason- 
able in light of known circumstances. 

(e) (1) The Attorney General and the Federal Trade Commission 
shall monitor the development and carrying out of voluntary agree- 
ments and plans of action authorized under this section in order to 
promote competition and to prevent anticompetitive practices and 
effects, while achieving substantially the purposes of this part. 



296 

(2) In addition to any requirement specified under subsections (b) 
and (c) of this section and in order to carry out the purposes of 
this section, the Attorney General, in consultation with the Federal 
Trade Commission and the Administrator, shall promulgate rules 
concerning the maintenance of necessary and appropriate records 
related to the development and carrying out of voluntary agreements 
and plans of action authorized pursuant to this section. 

(3) Persons developing or carrying out voluntary agreements and 
plans of action authorized pursuant to this section shall maintain such 
records as are required by rules promulgated under paragraph (2). 
The Attorney General and the Federal Trade Commission shall have 
access to and the right to copy such records at reasonable times and 
upon reasonable notice. 

(4) The Attorney General and the Federal Trade Commission may 
each prescribe such rules as may be necessary or appropriate to carry 
out their repsective responsibilities under this section. They may both 
utilize for such purposes and for purposes of enforcement any powers 
conferred upon the Federal Trade Commission or the Department of 
Justice, or both, by the antitrust laws or the Antitrust Civil Process 
Act ; ^ and wherever any such law refers to "the purposes of this Act" 
or like terms, the reference shall be understood to include this section. 

(f ) (1) There shall be available as a defense to any civil or criminal 
action brought under the antitrust laws (or any similar State law) in 
respect to actions taken to develop or carry out a voluntary agreement 
or plan of action by persons engaged in the business of producing, 
transporting, refining, distributing, or storing petroleum products 
(provided that such actions were not taken for the purpose of injuring 
competition) that — 

(A) such actions were taken — 

'(i) in the course of developing a voluntary agreement or 
plan of action pursuant to this section, or 

(ii) to carry out a voluntary agreement or plan of action 
authorized and approved in accordance with this section, and 

(B) such persons complied with the requirements of this sec- 
tion and the rules promulgated hereunder. 

(2) Except in the case of actions taken to develop a voluntary 
agreement or plan of action, the defense provided in this subsection 
shall be available only if the person asserting the defense demonstrates 
that the actions were specified in, or within the reasonable contem- 
plation of, an approved plan of action. 

(3) Persons interposing the defense provided by this subsection 
shall have the burden of proof, except that the burden shall be on the 
person against whom the defense is asserted with respect to whether 
the actions were taken for the purpose' of injuring competition. 

(g) No provision of this section shall be construed as granting 
immunity for, or as limiting or in any way affecting any remedy or 
penalty which may result from any legal action or proceeding arising 
from, any act or practice which occurred prior to the date of enact- 
ment of this Act or subsequent to its expiration or repeal. 

(h) Upon the expiration of the 90-day period which begins on the 
date of enactment of this Act, the provisions of sections 708 and 708A 

' 15 U.S.C. 1311 note. 



297 

(other than 708A(o)) of the Defense Production Act of 1950 » shall 
not apply to any agreement or action undertaken for the purpose of 
developing or carrying out (1) the international energy program, or 
(2) any allocation, price control, or similar program with respect to 
petroleum products under this Act or under the Emergency Petroleum 
Allocation Act of 1973.^ For purposes of section 708(A) (o) of the 
Defense Production Act of 1950, the effective date of the provisions of 
this Act which relate to international voluntary agreements to carry 
out the International Energy Program shall be deemed to be 90 days 
after the date of enactment of this Act. 

(i) The Attorney General and the Federal Trade Commission shall 
each submit to the Congress and to the President, at least once every 
6 months, a report on the impact on competition and on small business 
of actions authorized by this section. 

(j) The authority granted by this section shall terminate June 30, 
1979. 

(k) In any action in any Federal or State court for breach of 
contract, there shall be available as a defense that the alleged breach 
of contract was caused predominantly by action taken during an 
international energy supply emergency to carry out a voluntary 
agreement or plan of action authorized and approved in accordance 
with this section. 

(1) As used in this section and section 254 : 

(1) The term "international energy supply emergency" means 
any period (A) beginning on any date which the President 
determines allocation of petroleum products to nations participat- 
ing in the international energy program is required by chapters 
III and IV of such program, and (B) ending on a date on which 
he determines that such allocation is no longer required. Such 
a period may not exceed 90 days, but the President may establish 
one or more additional 90-day periods by making anew the deter- 
mination under subparagraph (A) of the preceding sentence. 
Any determination respecting the beginning or end of any siich 
period shall be published in the Federal Re^ster. 

(2) The term "allocation and information provisions of the 
international energy program" means the provisions of the inter- 
national energy program which relate to international allocation 
of petroleum products and to the information system provided in 
such program. 

ADVISORY COMMTTTEES 

Sec. 253. (a) To achieve the purposes of the international energy 
program with respect to international allocation of petroleum products 
and the information system provided in such program, the Adminis- 
trator may provide for the establishment of such advisory committees 
as he determines are necessary. In addition to the requirements speci- 
fied in this section, sucli advisory committees shall be subject to the 
provisions of section 17 of the Federal Energy Administration Act 
of 1974 ^° (whether or not such Act or any of its provisions expire or 
terminate before June 30, 1985) ; shall be chaired by a regular full- 

8 50 U.S.C. App. 2158. 2158a. 
•42 U.S. C. 751 note. 
"IB U.S.C. 776. 



20-594 O - 78 - 20 



298 

time Federal employee ; and shall include representatives of the pub- 
lic. The meetings of such committees shall be open to the public. The 
Attorney General and the Federal Trade Commission shall have ade- 
quate advance notice of any meeting and may have an official repre- 
sentative attend and participate in any such meeting. 

(b) A verbatim transcript shall be kept of such advisory committee 
meetings, and shall be deposited with the Attorney General and the 
Federal Trade Commission. Such transcript shall be made available 
for public inspection and copying in accordance with section 552 of 
title 5, United States Code, except that matter may not be withheld 
from disclosure under section 552(b) of such title on grounds other 
than the grounds specified in section 552 (b) (1), (b) (3), and so much 
of (b) (4) as relates to trade secrets, or pursuant to a determination 
under subsection (c). 

(c) The President, after consultation with the Secretary of State, 
the Federal Trade Commission, the Attorney General, and the Admin- 
istrator, may suspend the application of — 

(1) sections 10 and 11 of the Federal Advisory Committee 
Act," 

(2) subsections (b) and (c) of section 17 of the Federal Energy 
Administration Act of 1974,*° 

(3) the requirement under subsection (a) of this section that 
meetings be open to the public, and 

(4) the second sentence of subsection (b) ; 

if the President determines with respect to a particular meeting, (A) 
that such suspension is essential to the developing or carrying out of 
the international energy program, (B) that such suspension relates 
solely to the purpose of international allocation of petroleum products 
and the information system provided in such program, and (C) that 
the meeting deals with matters described in section 552(b) (1) of title 
5, United States Code. Such determination by the President shall be 
in writing, shall set forth a detailed explanation of reasons justifying 
the granting of such suspension, and shall be published in the Federal 
Register at a reasonable time prior to the effective date of any such 
suspension. 

EXCHANGE OF INFORMATION 

Sec. 254. (a) (1) Except as provided in subsections (b) and (c), the 
Administrator, after consultation with the Attorney General, may pro- 
vide to the Secretary of State, and the Secretary of State may 
transmit to the International Energy Agency established by the inter- 
national energy program, the information and data related to the 
energy industry certified by the Secretary of State as required to be 
submitted under the international energy program. 

(2) (A) Except as provide in subparagraph (B) of this para- 
graph, any such information or data which is geological or geo- 
physical information or a trade secret or commercial or financial 
information to which section 552 (b) (9) or (b) (4) of title 5, United 
States Code, applies shall, prior to such transmittal, be aggregated, 
accumulated, or otherwise reported in such manner as to avoid, to 
the fullest extent feasible, identification of any person from whom the 

» 5 D.8.C. App. 1. 



I 



299 

United States obtained such information or data, and in the case of 
geological or geophysical information, a competitive disadvantage to 

such person. , * x . , . i. 

(B)(1) Notwithstanding subparagraph (A) of this paragraph, 
during an international energy supply emergency, any such informa- 
tion or data with respect to the international allocation of petroleum 
products may be made available to the International Energy Agency 
if otherwise authorized to be made available to such Agency by para- 
graph (1) of this subsection. 

(ii) Subparagraph (A) shall not apply to information described 
in subparagraph (A) (other than geological or geophysical informa- 
tion) if the President certifies, after opportunity for presentation of 
views by interested persons, that the International Energy Agency 
has adopted and is implementing security measures which assure that 
such information will not be disclosed by such Agency or its employees 
to any person or foreign country without having been aggregated, 
accumulated, or otherwise reported in such manner as to avoid identi- 
fication of any person from whom the United States obtained such 
information or data. 

(3) (A) Within 90 days after the date on enactment of this Act, 
and periodically thereafter, the President shall review the operation 
of this section and shall determine whether other signatory nations 
to the international energy program are transmitting information 
and data to the International Energy Agency in substantial compli- 
ance with such program. If the President determines that other 
nations are not so complying, paragraph (2)(B)(ii) shall not apply 
until he determines other nations are so complying. 

(B) Any person who believes he has been or will be damaged by 
the transmittal of information or data pursuant to this section shall 
have the right to petition the President and to request changes in 
procedures which will protect such person from any competitive 
damage. 

(b) If the President determines that the transmittal of data or 
information pursuant to the authority of this section would prejudice 
competition, violate the antitrust laws, or be inconsistent with United 
States national security interests, he may require that such data or 
information not be transmitted. 

(c) Information and data the confidentiality of which is protected 
by statute shall not be provided by the Administrator to the Secretary 
of State under subsection (a) of this section for transmittal to the 
International Energy Agency, unless the Administrator has obtained 
the specific concurrence of the head of any department or agency which 
has the primary statutory authority for the collection, gathering, or 
obtaining of such information and data. In making a determination 
to concur in providing such information and data, the head of any 
department or agency which has the primary statutory authority for 
the collection, gathering, or obtaining of such information and data 
shall consider the purposes for which such information and data were 
collected, gathered, and obtained, the confidentiality provisions of 
such statutory authority, and the international obligations of the 
United States under the international energy program with respect 
to the transmittal of such information and data to an international 
organization or foreign country. 



300 

(d) For the purposes of carrying out the obligations of the United 
States under the international energy program, the authority to collect 
data granted by sections 11 and 13 of the Energy Supply and Environ- 
mental Coordination Act and the Federal Energ}' Administration 
Act of 1974 respectfully, shall continue in full force and effect with- 
out regard to the provisions of such Acts relating to their expiration. 

(e) The authority under this section to transmit information shall 
be subject to any limitations on disclosure contained in other laws, 
except that such authority may be exercised without regard to — 

(1) section 11(d) of the Energy Supply and Environmental 
Coordination Act of 1974; 

(2) section 14(b) of the Federal Energy Administration Act 
of 1974; 

(3) section 7 of the Export Administration Act of 1969 ; ^^ 

(4) section 9 of title 13, United States Code ; 

(5) section 1 of the Act of January 27, 1938 (15U.S.C. 176(a) ) ; 
and 

(6) section 1905 of title 18, United States Code. 

RELATIONSHIP OF THIS TITLE TO THE INTERNATIONAL ENERGY AGREEMENT 

Sec. 255. The purpose of the Congress in enacting this title is to 
provide standby energy emergency authority to deal with energy 
shortage conditions and to minimize economic dislocations and adverse 
impacts on employment. While the authorities contained in this title 
may, to the extent authorized by this title, be used to carry out obliga- 
tions incurred by the United States in connection with the Interna- 
tional Energy Program, this title shall not be construed in any way 
as advice and consent, ratification, endorsement, or other form of 
congressional approval of the specific terms of such program. 



TITLE V— GENERAL PROVISIONS 



f Sections 505 and 506 amend The Energy Supply and Environmental Coordi- 
nation Act of 1974] 

PROHiBlTED ACTS 

Sec. 524. It shall be unlawful for any person — 

(1) to violate any provision of title I or title II of this Act or 
this title (other than any provision of such titles which amend 
another law), 

(2) to violate any rule, regulation, or order issued pursuant to 
any such provision or any provision of section 383 of this Act ; or 

(3) to fail to comply with any provision prescribed in, or pur- 
suant to, an energy conservation contingency plan which is in 
effect. 



12 For text, see p. 138. 



301 



ENFORCEMENT 



Sec. 525. (a) Whoever violates section 524 shall be subject to a civil 
penalty of not more than $5,000 for each violation. 

(b) Whoever willfully violates section 524 shall be fined not more 
than $10,000 for each violation. 

(c) Any person who knowingly and willfully violates section 524 
with respect to the sale, offer of sale, or distribution in commerce of 
a product or commodity after having been subjected to a civil penalty 
for a prior violation of section 524 with respect to the sale, offer of sale, 
or distribution in commerce of such product or commodity shall be 
fined not more than $50,000 or imprisoned not more than 6 months, or 
both. 

(d) Whenever it appears to any officer or agency of the United States 
in whom is vested, or to whom is delegated, authority under this Act 
that any person has engaged, is engaged, or is about to engage in acts 
or practices constituting a violation of section 524, such officer or 
agency may request tlie Attorney General to bring an action in an 
appropriate district court of the United States to enjoin such acts or 
practices, and upon a proper showing a temporary restraining order 
or a preliminary or permanent injunction shall be granted without 
bond. Any such court may also issue mandatory injunctions command- 
ing any person to comply with any rule, regulation, or order described 
in section 524. 

(e) (1) Any person suffering legal wrong because of any act or 
practice arising out of any violation of any provision of this Act 
described in paragraph (2), may bring an action in an appropriate 
district court of the United States without regard to the amount in 
controversy, for appropriate relief, including an action for a declara- 
tory judgment or writ of injunction. Nothing in this subsection shall 
authorize any person to recover damages. 

(2) The provisions of this Act referred to in paragraph (1) are as 
follows : 

(A) Section 202 (relating to energy conservation plans). 

(B) Section 251 (relating to international oil allocation). 

(C) Section 252 (relating to international voluntary agree- 
ments). 

(D) Section 253 (relating to advisory committees) . 

(E) Section 254 (relating to international exchange of infor- 
mation). 

(F) Section 521 (relating to prohibition on certain actions). 

EFFECT ox OTHER LAWS 

Sec. 526. No State law or State program in effect on the date of enact- 
ment of this Act, or which may become effective thereafter, shall be 
superseded by any pro\ision of title T or TI of this Act (other than 
any provision of such title which amends another law) or any rule, 
regulation, or order thereunder, except insofar as such State law or 
Stiite program is m conflict with such provision, rule, regulation, or 
order. 



302 

EXPIRATION 

Sec. 531. Except as otherwise provided in title I or title TI, all 
authority under any provision of title I or title II (other than a pro- 
vision of either such title amending another law) and any rule, regu- 
lation, or order issued pursuant to such authority, shall expire at 
midnight, June 30, 1985, but such expiration shall not affect any 
action or pending proceedings, civil or criminal, not finally determined 
on such date, nor any action or proceeding based upon any act com- 
mitted prior to midnight, June 30, 1985. 

Part C — Congressional Review 

procedure for congressional review of presidential requests to 
implement certain authorities 

Sec. 551. (a) For purposes of this section, the term "energy action" 
means any matter required to be transmitted, or submitted to the Con- 
gress in accordance with the procedures of this section. 

(b) The President shall transmit any energy action (bearing an 
identification number) to both Houses of Congress on the same day. If 
both Houses are not in session on the day any energy action is received 
by the appropriate officers of each House, for purposes of this section 
such energy action shall be deemed to have been transmitted on the 
first succeeding day on which both Houses are in session. 

(c) (1) Except as provided in paragraph (2) of this subsection, if 
energy action is transmitted to the Houses of Congress, such action 
shall take effect at the end of the first period of 15 calendar days of 
continuous session of Congress after the date on which such action is 
transmitted to such Houses, unless between the date of transmittal and 
the end of such 15-day period, either House passes a resolution stating 
in substance that such House does not favor such action. 

(2) An energy action described in paragraph (1) may take effect 
prior to the expiration of the 15-calendar-day period after the date on 
which such action is transmitted, if each House of Congress approves 
a resolution affirmatively stating in substance that such House does not 
object to such action. 

(d) For the purpose of subsection (c) of this section — 

(1) continuity of session is broken only by an adjournment of 
Congress sine die ; and 

(2) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are excluded 
in the computation of the 15-calendar-day period. 

(e) Under provisions contained in an energy action, a provision of 
such an action may take effect on a date later than the date on which 
such action otherwise takes effect pursuant to the provisions of this 
section. 

(f ) (1) This subsection is enacted by Congress — 

(A) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such it is 
deemed a part of the rules of each House, respectively, but 
applicable only with respect to the procedure to be followed in that 
House in the case of resolutions described by paragraph (2) 



303 

of this subsection ; and it supersedes other rules only to the extent 
that it is inconsistent therewith ; and 

(B) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to tlie procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of the House. 

(2) For purposes of this subsection, the term "resolution" means 
only a resolution of either House of Congress described in subpara- 
graph (A) or (B) of this paragraph. 

(A) A resolution to the matter after the resolving clause of 

which is as follows: "That the does not object to the 

energy action numbered submitted to the Congress 

on , 19__", the first blank space therein being filled 

with the name of the resolving House and the other blank spaces 
being appropriately filled ; but does not include a resolution which 
specifics more than one energy action. 

(B) A resolution the matter after the resolving clause of which 

is as follows: "That the does not favor the energy 

action numbered transmitted to Congress on 

, 19__.", the first blank space therein being filled with the 

name of the resolving House and the otlior blank spaces therein 
being appropriately filled ; but does not include a resolution which 
specifies more than one energy action. 

(3) A resolution once introduced with respect to an energy action 
shall immediately be referred to a committee (and all resolutions with 
respect to the same plan shall be referred to the same committee) by 
the President of the Senate or the Speaker of the House of Representa- 
tives, as the case may be. 

(4) (A) If the committee to which a resolution with respect to an 
energy action has been referred has not reported it at the end of 5 
calendar days after its referral, it shall be in order to move either to 
discharge the committee from further consideration of such resolution 
or to discharge the committee from further consideration of any other 
resolution with respect to such energy action which has been referred 
to the committee. 

(B) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it may 
not be made after the committee has reported a resolution with respect 
to the same energy action), and debate thereon shall be limited to not 
more than one hour, to be divided equally between those favoring and 
those opposing the resolution. An amendment to the motion shall not 
be in order, and it shall not be in order to move to reconsider the vote 
by which the motion was agreed to or disagreed to. 

(C) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution with respect to 
the same energy action. 

(5) (A) When the committee has reported, or has been discharged 
from further consideration of, a resolution, it shall be at any time 
thereafter in order (even though a previous motion to the same effect 
has been disagreed to) to move to proceed to the consideration of the 
resolution. The motion shall be highly privileged and shall not be 



304 

debatable. An amendment to the motion shall not be in order, and it 
shall not be in order to move to reconsider the vote by which the motion 
was agreed to or disagreed to. 

(B) Debate on the resolution referred to in subparagraph (A) of 
this paragraph shall be limited to not more than 10 hours, which shall 
be divided equally between those favoring and those opposing such 
resolution. A motion further to limit debate shall not be debatable. 
An amendment to, or motion to recommit, the resolution shall not be in 
order, and it shall not be in order to move to reconsider the vote by 
which such resolution was agreed to or disagreed to; except that it 
shall be in order — 

(i) to offer an amendment in the nature of a substitute, consist- 
ing of the text of a resolution described in paragraph (2) (A) of 
this subsection with respect to an energy action, for a resolution 
described in paragraph (2) (B) of this subsection with respect to 
the same such action, or 

(ii) to offer an amendment in the nature of a substitute, consist- 
ing of the text of a resolution described in paragraph (2) (B) of 
this subsection with respect to an energy action, for a resolution 
described in paragraph (2) (A) of this subsection with respect to 
the same such action. 
The amendments described in clauses (i) and (ii) of this subpara- 
graph shall not be amendable. 

(6) (A) Motions to postpone, made with respect to the discharge 
from committee, or the consideration of a resolution and motions to 
proceed to the consideration of other business, shall be decided with- 
out debate. 

(B) Appeals from the decision of the Chair relating to the appli- 
cation of the rules of the Senate or the House of Representatives, as 
the case may be, to the procedure relating to a resolution shall be 
decided without debate. 

(7) Notwithstanding any of the provisions of this subsection, if a 
House has approved a resolution with respect to an energy action, then 
it shall not be in order to consider in that House any other resolution 
with respect to the same such action. 

EXPEDITED PROCEDURE FOR CONGRESSIONAL CONSIDERATION OF CERTAIN 

AUTHORITIES 

Sec. 552. (a) Any contingency plan transmitted to the Congress 
pursuant to section 201 (a) (1) shall bear an identification number and 
shall be transmitted to both Houses of Congress on the same day and 
to each House while it is in session. 

(b) No such contingency plan may be considered approved for pur- 
poses of section 201(a)(2) of this Act unless between the date of 
transmittal and the end of the first period of 60 calendar days of con- 
tinuous session of Congress after the date on which such action is 
transmitted to such House, each House of Congress passes a resolution 
described in subsection (d) (2). 

(c) For the purpose of subsection (b) of this section— 

(1) contmuity of session is broken only by an adjournment of 
Congress sine die ; and 



305 

(2) the days on which either House is not in session because of 
an adjournment of more than 3 days to a day certain are excluded 
in the computation of the 60-calendar-day period, 
(d) (1) This subsection is enacted by Congress — 

(A) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such it is 
deemed a part of the rules of each House, respectively, but appli- 
cable only with respect to the procedure to oe followed in that 
House in the case of resolutions described by paragraph (2) of 
this subsection; and it supersedes other rules only to the extent 
that it is inconsistent therewith ; and 

(B) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of* the House. 

(2) For purposes of this subsection, the term "resolution" means 
only a resolution of either House of Congress the matter after the 

resolving clauses of which is as follows: "That the 

approves the contingency plan numbered submitted to 

the Congress on , 19 ", the first blank space therein 

being filled with the name of the resolving House and the other 
blank spaces being appropriately filled ; but does not include a resolu- 
tion which specifies more than one contingency plan. 

(3) A resolution once introduced with respect to a contingency 
plan shall immediately be referred to a committee (and all resolutions 
with respect to the same contingency plan shall be referred to the 
same committee) by the President of the Senate or the Speaker of 
the House of Representatives, as the case may be. 

(4) (A) If the committee to which a resolution with respect to a 
contingency plan has been referred has not reported it at the end of 
20 calendar days after its referral, it shall be in order to move either 
to discharge the committee from further consideration of such resolu- 
tion or to discharge the committee from further consideration of any 
other resolution with respect to such contingency plan which has been 
referred to the committee. 

(B) A motion to discharge may be made only by an individual 
favoring the resolution, shall be highly privileged (except that it may 
not be made after the committee has reported a resolution with respect 
to the same contingency plan), and debate thereon shall be limited 
to not more than 1 hour, to be divided equally between those favoring 
and those opposing the resolution. An amendment to the motion shall 
not be in order, and it shall not he in order to move to reconsider the 
vote by which the motion was agreed to or disagreed to. 

(C) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution with respect 
to the same contingency plan. 

(5) (A) When the committee has reported, or has been discharged 
from further consideration of, a resolution, it shall be at any time 
thereafter in order (even though a previous motion to the same effect 
has been disagreed to) to move to proceed to the consideration of the 
resolution. The motion shall be highly privileged and shall not be 
debatable. An amendment to the motion shall not be in order, and it 



306 

shall not be in order to move to reconsider the vote by which the motion 
was agreed to or disagreed to. 

(B) Debate on the resolution referred to in subparagraph (A) of 
this paragraph shall be limited to not more than 10 hours, which shall 
be divided equally between those favoring and those opposing such 
resolution. A motion further to limit debate shall not be debatable. An 
amendment to, or motion to recommit the resolution shall not be in 
order, and it shall not be in order to move to reconsider the vote by 
which such resolution was agreed to or disagreed to. 

(6) (A) Motions to postpone, made with respect to the discharge 
from committee, or the consideration of a resolution and motions to 
proceed to the consideration of other business, shall be decided without 
debate. 

(B) Appeals from the decision of the Chair relating to the applica- 
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedures relating to a resolution shall bo decided 
without debate. 



3. Defense Production Act Amendments of 1975 

Partial text of Public Law 94-152 [S. 1537] 89 Stat. 810 approved December 16, 
1975. as amended by Public Law 94-153 [H.R. 11027]. 89 Stat. 822, approved 
December 16, 1975; and by Public Law 94-220 [HJ. Res. 784], 90 Stat. 195, 
approved February 7. 1976. 

AN ACT TO amend the Defense Production Act of 1950, as amended 

Be it enacted hy the Senate and House of Representatives of 'the 
United States of America in Congress assembled, Tliat tliis Act may 
be cited as the "Defense Production Act Amendments of 1975". 



Sec. 3. Section 708 of the Defense Production Act of 1950^ is 
amended to read as follows : 



"Sec. 708A. (a) Except as specifically provided in subsection (j) 
of this section and section 708(j) of this Act, no provision of this Act 
shall be deemed to convey to any person any immunity from civil or 
criminal liability, or to create defenses to actions, under the antitrust 
laws. 

»" (b) As used in this section — 
"(1) The term 'international energy supply emergency' means 
any period (A) beginning on any date which the President deter- 
mines allocation of petroleum products to nations participating in 
the international agreement is required by chapters III and IV of 
such program, and (B) ending on a date on which he determines 
such allocation is no longer required. Such a period may not 
exceed ninety days, but the President may establish one or more 
additional periods by making the determination under clause (A) 
ft of the preceding sentence. Any determination respecting the 

■ begining or end of any such period shall be published in the 

■ Federal Register. 

I "(2) The term 'international agreement' means the Agreement 

■ on an International Energy Program, signed by the United 
I State.s on November 18, 1974> 

B "(3) The term 'Administrator' means the Administrator of the 

■ Federal Energy Administration. 

^^^^ " (4) The term 'petroleum products' means — 
^■B; "(A) crude oil, 

^^^V; "(B) natural gas liquids and other liquids produced in 

^^^^K association with crude oil or natural gas, 

^^^^P "(C) refined petroleum products, including but not limited 

^^^^r to gasoline, kerosene, distillates, residual fuel oil, refined lu- 
^^^K bricating oil, and liquefied petroleum gases ; and 
^K^^ "(D) blending agents and additives used in conjunction 

with crude oil and refined petroleum products. 



^50 U.S.C. ApD. 2158. 

2 For text, see Vol. Ill, Sec. I. 



(307) 



308 

"(c) The requirements of this section shall be the sole procedures 
applicable to the development or implementation of voluntary agree- 
ments or plans of action to accomplish the objectives of the interna- 
tional agreement with respect to international allocation of petroleum 
products and the information system provided in such agreement, and 
to the availability of immunity from the antitrust laws respecting the 
development or implementation of such voluntary agreements or plans 
of action. 

"(d)(1) To achieve the purposes of the international agreement 
with respect to international allocation of petroleum products and 
the information system provided in such agreement, the Administrator 
may provide for the establishment of such advisory committees as 
he determines are necessary. In addition to the requirements specified 
in this section, such advisory committees shall be subject to the pro- 
visions of the Federal Advisory Committee Act ^ and section 17 of the 
Federal Energy Administration Act of 1974*, whether or not such 
Acts or any provisions thereof expire or terminate during the term 
of this Act or of such committees, and, in all cases, such advisory com- 
mittees shall be chaired by a Federal employee (other than an individ- 
ual employed pursuant to section 3109 of title 5, United States Code) 
and shall include representatives of the public, and the meetings of 
such committees shall be open to the public. The Attorney General and 
the Federal Trade Commission shall have adequate advance notice 
of any meeting and may have an official representative attend and 
participate in any such meeting. 

"(2) A full and complete verbatim transcript shall be kept of such 
advisory committee meetings, and shall be taken and deposited, 
together with any agreement resulting therefrom with the Attorney 
General and the Federal Trade Commission. Such transcript and agree- 
ment shall be made available for public inspection and copying, sub- 
ject to the provisions of sections 552 (b) (1) and (b) (3) of title 5, 
United States Code. 

"(3) For the purposes of this section, the provisions of subsection 
(a) of section 17 of the Federal Energ;y^ Administration Act of 1974 * 
shall apply to any board, task force, commission, committee, or similar 
group, not composed entirely of full-time Federal employees (other 
than individuals employed pursuant to section 3109 of title 5, United 
States Code) established or utilized to advise the United States Gov- 
ernment with respect to the development or implementation of any 
agreement or plan of action under the international ajrreement. 

"(e) The Administrator, subject to the approval of the Attorney 
General, after both of them have consulted with the Federal Trade 
Commission and the Secretary of State, shall promulgate, by rule, 
standards and procedures by which persons engaged in the business 
of producing, refining, marketing, or distributing petroleum products 
may develop and implement voluntary agreements and plans of action 
which are required to implement the provisions of the international 
agreement which relate to international allocation of petroleum prod- 
ucts and the information system provided in such agreement. 

«5 U.S.C. App. I. 
* 15 U.S.C. 776. 



309 

"(f) The standards and procedures under subsection (e) shall be 
promulgated pursuant to section 553 of title 5, United States Code. 
They shall provide, among other things, that — 

"(1) (A) Meetings held to develop or implement a voluntary 
agreement or plan of action under this section shall permit attend- 
ance by interested persons, including all interested segments of 
the petroleum industry, consumers, committees of Congress, and 
the public, shall be preceded by timely and adequate notice with 
identification of the agenda of such meeting to the Attorney 
General, the Federal Trade Commission, committees of Congress 
and (except during an international energy supply emer- 
gency) to the public, and shall be initiated and chaired by a Fed- 
eral employee other than an individual employed pursuant to 
section 3109 of title 5, United States Code; except that (i) 
meetings of bodies created by the International Energy Agency 
established by the international agreement need not be open to 
interested persons and need not be initiated and chaired b^ a Fed- 
eral employee, and (ii) the Administrator, in consultation with 
the Secretary of State and the Attorney General, may determine 
that a meeting held to implement or carry out an agreement or 
plan of action shall not be public and that attendance may be 
limited, subject to reasonable representation of affected segments 
of the petroleum industry (as determined by the Administrator, 
after consultation with the Attorney General) if he finds that a 
wider disclosure would be detrimental to the foreign policy inter- 
ests of the United States. 

"(B) No meetings may be held to develop or implement a 
voluntary agreement or plan of action under this section, unless 
a Federal employee other than an individual employed pursuant 
to section 3109 of title 5, United States Code, is present ; except 
that during an international energy supply emergency, a meeting 
to implement such an agreement or plan of action may be held 
outside the presence of such an employee (and need not be initi- 
ated or chaired by such an employee) if prior consent is granted 
by the Administrator and the Attorney General. The Adminis- 
trator and the Attorney General shall each make a written record 
of the granting of any such prior consent. 

"(2) Interested persons permitted to attend such a meeting 
shall be afforded an opportunity to present in writing and orally, 
data, views, and arguments at such meetings. 

" (3) A verbatim transcript or, if keeping a verbatim transcript 
is not practicable, full and complete notes or minutes shall be 
kept of any meeting held or communication made to develop or 
implement a voluntary agreement or plan of action under this 
section, between or among persons who are parties to such a 
voluntary agreement, or with respect to meetings held or com- 
munications made to develop a voluntary agreement; except that, 
during any international energy supply emergency, in lieu of 
minutes or a transcript, a log may be kept containing a notation 
of the parties to, and subject matter of, any such communication 
(other than in the course of such a meeting) . Such minutes, notes, 
transcript, or log shall be deposited, together with any agreement 



310 

resulting therefrom, with the Administrator, and shall be avail- 
able to the Attorney General and the Federal Trade Commission. 
Such minutes, notes, transcripts, logs, and agreements shall be 
available for public inspection and copying, except as otherwise 
provided in section 552 (b) (1) and (b) (3) of title 5, United States 
Code, or pursuant to a determination by the Administrator, in 
consultation with the Secretary of State and the Attorney Gen- 
eral, that such disclosure would be detrimental to the foreign 
policy interests of the United States. 
No provision of this section may be exercised so as to prevent com- 
mittees of Congress from attending meetings to which this subsection 
applies, or from having access to any transcripts or minutes of such 
meetings, or logs of communication. 

******* 

"(j) (1) There shall be available as a defense for any person to any 
civil or criminal action brought for violation of the antitrust laws (or 
any similar law of any State) with respect to any act or omission to 
act to develop or carry out any voluntary agreement under this section 
that — 

"(A) such act or omission to act was taken in good faith by 
that person — 

"(i) in the course of developing a voluntary agreement 
under this section, or 

"(ii) to carry out a voluntary agreement under this sec- 
tion ; and 
"(B) such person fully complied with this section and the rules 
promulgated hereunder, and acted in accordance with the terms 
of the voluntary agreement. 
"(2) In any action in any Federal or State court for breach of con- 
tract there shall be available as a defense that the alleged breach of 
contract was caused solely by action taken during an international 
energy supply emergency in accordance with a vohmtary agreement 
authorized and approved under the provisions of this section. 
******* 

"(1)(1) The Administrator, after consultation with the Secretary 
of State, shall report annually to the President and the Congress on 
the performance under voluntary agreements or plans of action to 
accomplish the objectives of the international agreement with respect 
to international allocation of petroleum products and the information 
system provided in such agreement. 

"(2) The Attorney General and the Federal Trade Commission 
shall each submit to the Congress and to the President, at least once 
every six months, reports on the impact on competition and on small 
business of actions authorized by this section. 

"(m) The authorities contained in this section with respect to the 
executive agreement, commonly known as the Agreement on an Inter- 
national Energy Program dated November 18, 1974, and referred to 
in this section as the international energy agreement, shall not be con- 
strued in any way as advice and consent, ratification, endorsement, or 
any other form of congressional approval of the specific terms of such 
executive agreement or any related annex, protocol, amendment, modi- 



311 

fication, or other agreement which has been or may in the future be 
entered into. 

"(o) If S. 622, Ninety-fourth Congress (the Energy Policy and 
Conservation Act) is enacted ^ then (effective on the effective date of 
the provisions of S. 622 which relate to international voluntary agree- 
ments to carry out the International Energy Program) this section 
and section 708 shall not be applicable to (1) any voluntary agree- 
ment or plan of action developed or implemented to carry out obliga- 
tions of the United States under the international agreement, or (2) 
any voluntary agreement or plan of action which relates to petroleum 
products and which is developed, in whole or in part, to carry out the 
purposes of a treaty or executive agreement to which the United 
States is a party or to implement a program of international coopera- 
tion between the United States and one or more foreign countries." 

Sec. 9.*' This Act and the amendments made by it shall take effect 
at the close of November 30, 1975, except that the amendment made by 
section 3 shall take effect upon the one hundred and twentieth day 
beginning after the date of its enactment. 



5 S. 622 became Public Law 94-163 on December 22. 1975. See p. 290 for partial text. 
« Public Law 94-220 amended Sec. 9 which formerly read as follows : 
"Sec. 9. This Act and the amendments made by it shall take effect on the one hundred 
and twentieth day beginning after the date of its enactment, except that the amendment 
made by section 2 shall take effect upon the close of November 30, 1975." 



I 



4. Negotiations With Canada Concerning the Alaskan Pipeline 

Partial text of Public Law 93-153 [S. 1081], 87 Stat. 576 at 588, approved 
November 16, 1973 

AN ACT To amend section 28 of the Mineral Leasing Act of 1920, and to 
authorize a trans-Alaska oil pipeline, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 



TITLE III— NEGOTIATIONS WITH CANADA 

Sec. 301. The President of the United States is authorized and 
requested to enter into negotiations with the Government of Canada to 
determine — 

(a) the willingness of the Government of Canada to permit the 
construction of pipelines or other transportation systems across 
Canadian territory for the transport of natural gas and oil from 
Alaska's North Slope to markets in the United States, including 
the use of tankers by way of the Northwest Passage ; 

(b) the need for intergovernmental understandings, agree- 
ments, or treaties to protect the interests of the Governments of 
Canada and the United States and any party or parties involved 
with the construction, operation, and maintenance of pipelines 
or other transportation systems for the transport of such natural 
gas or oil ; 

(c) the terms and conditions under which pipelines or other 
transportation systems could be constructed across Canadian 
territory ; 

(d) the desirability of undertaking joint studies and investi- 
gations designed to insure protection of the environment, reduce 
legal and regulatory uncertainty, and insure that the respective 
energy requirements of the people of Canada and of the United 
States are adequately met ; 

(e) the quantity of such oil and natural gas from the North 
Slope of Alaska for which the Government of Canada would 
guarantee transit ; and 

(f) the feasibility, consistent with the needs of other sections 
of the United States, of acquiring additional energy from other 
sources that would make unnecessary the shipment of oil from 
the Alaska pipeline by tanker into the Puget Sound area. 

The President shall report to the House and Senate Committees on 
Interior and Insular Affairs the actions taken, the progress achieved, 
the areas of disagreement, and the matters about which more informa- 
tion is needed, together with his recommendations for further action. 

(312) 



J. UNITED NATIONS AND OTHER INTERNA- 
TIONAL ORGANIZATIONS 

CONTENTS 

Page 

1. The United Nations Participation Act of 1945, as amended (Public Law 

79-264) 315 

2. The United Nations Headquarters Agreement Act (Public Law 80-537) _ 322 

3. Appropriations Limitation on Contributions to International Organiza- 

tions (Public Law 92-544) (partial text) 324 

4. Rhodesia Resolution 326 

a. To Halt the Importation of Rhodesian Chrome (Public Lav^ 

95-12) (partial text) 326 

b. Executive Order 11419 (Relating to Trade and Other Transac- 

tions Involving Southern Rhodesia) 327 

c. Armed Forces Appropriation Authorization, 1972 (Public Law 

92-156) (partial text) 330 

5. United Nations Peacekeeping Forces in the Middle East (Public Law 

94-37) 331 

6. Response to United Nations Resolution on Zionism (H. Res. 855, 94th 

Congress) 332 

7. United Nations Environment Program Participation Act of 1973 

(Public Law 93-188) 333 

8. Privileges and Immunities 334 

a. The International Organizations Immunities Act, as amended 

(Public Law 79-291) (partial text) 334 

b. Extending Certain Privileges to Representatives of Member 

States on the Council of the Organization of American States 
(Public Law 82-486, as amended) 342 

c. Extending Diplomatic Privileges to the Mission of the Commis- 

sion of the European Communities (Public Law 92-499) :__ 343 

d. Act for the Protection of Foreign Officials and Official Guests of 

the United States ( Public Law 92-539) 344 

e. Executive Protective Service, as amended (Public Law 80-771) 

(partial text) 350 

f. Act for the Prevention and Punishment of Crimes Against 

Internationally Protected Persons (Public Law 94-467) 
(partial text) 351 

g. Diplomatic Privileges and Immunities for the Liaison Office of 

the People's Republic of China (Public Law 93-22) 353 

h. Executive Order 11771 (Extending Diplomatic Privileges and 
Immunities to the Liaison Office of the People's Republic of 

China in Washington, D.C., and to Members Thereof) 354 

i. Foreign Sovereign Immunities Act of 1976 (Public Law 94-583) _ 355 



(313) 



20-594 O - 78 - 21 



1. The United Nations Participation Act of 1945, as amended ^ 

Public Law 79-264 [S. 1580], 59 Stat. 619; 22 U.S.C 287-287e, approved Decem- 
ber 20, 1945, as amended bv Public Law 81-216 [H.R. 5632], 63 Stat. 578, 
approved August 10, 1949; Public Law 81-341 [H.R. 4708], 63 Stat. 734; 
approved October 10, 1949; Public Law 86-707 [H.R. 7758], 74 Stat. 792, approved 
September 6, 1960; Public Law 89-206 [S. 1903], 79 Stat. 841, approved 
September 28, 1965; Public Law 93-126 [H.R. 7645], 87 Stat, 451, approved Octo- 
ber 18, 1973; and by Public Law 95-12 [H.R. 1746], 91 Stat. 22, approved March 
18, 1977 

AN ACT To provide for the appointment of representatives of the United States 
in the organs and agencies of the United Nations, and to make other provision 
with respect to the participation of the United States in such organization. 

Be it enncted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "United Nations Participation Act of 1945". 

Sec. 2. (a)- The President, by and with the advice and consent of 
the Senate, shall appoint a representative of the United States to the 
United Nations who shall have the rank and status of Ambassador 
Extraordinary and Plenipotentiary and shall hold office at the pleasure 
of the President. Such representative shall represent the United 
States in the Security Council of the United Nations and may serve 
ex officio as representative of the United States in any organ, com- 
mission, or other body of the United Nations other than specialized 
agencies of the United Nations, and shall perform such other fimc- 
tions in connection with the participation of the United States in the 
United Nations as the President may, from time to time, direct. 

(b)* The President, by and with the advice and consent of the Sen- 
ate, shall appoint additional persons with appropriate titles, rank, and 
status to represent the United States in the principal organs of the 
United Nations and in such organs, commissions, or other bodies as 
may be created by the United Nations with respect to nuclear energy 
or disarmament (control and limitation of armament). Such persons 
shall serve at the pleasure of the President and subject to the direction 
of the Representative of the United States to the United Nations. 
They shall, at the direction of the Representative of the United States 
to the United Nations, represent the United States in any organ, com- 
mission, or other bodv of the United Nations, including the Security 
Council, the Economic and Social Council, and the Trusteeship Coun- 
cil, and perform such other functions as the Representative of the 
United States is authorized to perform in connection with the par- 
ticipation of the United States in the United Nations. Any Deputy 
Representative or any other officer holding office at the time the pro- 



1 Sec. 503 of the Foreien Relations Authorization Act. Fiscal Venr IftTS (01 Stat. 858). 
called on the T'ttitcl States to initiate nialor reforms in the T'nited Nations svsteni fn 
orHer to "inke that hodv "nv^re oflTpr-tiyp in res'-'ivin*" r-Vhnl problems." For text of Sec. 
508 inclndinjr snecific i>roposals for U.S. action, see pajre 454. 

» As amended and restated hv sec. 1(a) of Pnbli'- Taw 8n-20fi. 79 Stat. 841 : 29 U.S.C. 
287). Previously amended and restated by sec. 2 of Public Law 81-341 (63 Stat. 734). 

(315) 



316 

visions of this Act, as amended, become effective shall not be required 
to be reappointed by reason of the enactment of this Act, as amended. 

(c)^ The President, by and with the advice and consent of the Sen- 
ate, shall designate from time to time to attend a specified session or 
specified sessions of the General Assembly of the United Nations 
not to exceed five representatives of the United States and such num- 
ber of alternates as he may determine consistent with the rules of pro- 
cedure of the General Assembly. One of the representatives shall be 
designated as the senior representative. 

(d)* The President may also appoint from time to time such other 
persons as he may deem necessary to represent the United States in 
organs and agencies of the United Nations. The President may, with- 
out the advice and consent of the Senate, designate any officer of the 
United States to act without additional compensation as the repre- 
sentative of the United States in either the Economic and Social 
Council or the Trusteeship Council (1) at any specified session thereof 
where the position is vacant or in the absence or disability of the reg- 
ular representative or (2) in connection with a specified subject matter 
at any specified session of either such Council in lieu of the regular 
representative. The President may designate any officer of the De- 
partment of State, whose appointment is subject to confirmation by 
the Senate, to act, without additional compensation, for temporary 
periods as the representative of the United States in the Security 
Council of the United Nations in the absence or disability of the 
representatives provided for under section 2 (a) and (b) or in lieu 
of such representatives in connection with a specified subject matter. 
(e)^ The President, by and with the advice and consent of the 
Senate, shall appoint a representative of the United States to the 
European office of the United Nations with appropriate rank and 
status who shall serve at the pleasure of the President and subject 
to the direction of the Secretary of State. Such person shall, at the 
direction of the Secretary of State, represent the United States at 
the European office of the United Nations, and perform such other 
functions there in connection with the participation of the United 
States in international organizations as the Secretary of State may, 
from time to time, direct. 

(f)^ Nothing contained in this section shall preclude the President 
or the Secretary of State, at the direction of the President, from rep- 
resenting the United States at any meeting or session of any organ or 
agency of the United Nations. 

(gY All persons appointed in pursuance of authority contained in 
this section shall receiA^e compensation at rates determined by the 
President upon the basis of duties to be performed but not in excess 
of rates authorized bv sections 411 and 412 of the Foreign Service Act 
of 1946 (Public Law" 724, Seventy -ninth Congress) for chiefs of mis- 
sion and Foreign Service officers occupying positions of equivalent 
importance, except that no Member of the Senate or House of Rep- 
resentatives or officer of the United States who is designated under 
subsections (c) and (d) of this section as a representative of the 

3 \s amended and restated by sec. 1 of Public Law 81-341 (63 Stat. 734). 

^ As amemieS and restated b/sec. Kb) of Public Law 8Q-206. 79 ^t^- S^l /Septeniber 
28, 1965). Previously amended and restated by sec. 1 of Public Law 81-341 (brf fetat. /dO). 

-•Subseos. re) and (f) were redesignated subsecs. (f) and (ff) r^^^P^^i^tri'A "oQ^f ^Z. 
subsec (e) was added by sec. 2 of Public Law 89-206 (79 Stat 841 ; 22 U.S.C. 287). The 
present sec. (g) was originally added by sec. 2 of Public Law 81-341. 



317 

United States or as an alternate to attend any specified session or 
specified sessions of the General Assembly shall be entitled to receive 
such compensation. 

Sec. 3.** The representatives provided for in section 2 hereof, when 
representing the United States in the respective organs and agencies 
of the United Nations, shall, at all times, act in accordance with the 
instructions of the President transmitted by the Secretary of State 
unless other means of transmission is directed by the President, and 
such representatives shall, in accordance with such instructions, cast 
any and all votes under the Charter of the United Nations. 

Sec. 4.^ The President shall, from time to time as occasion may 
require, but not less than once each year, make reports to the Congress 
of the activities of the United Nations and of the participation of 
the United States therein. He shall make special current reports on 
decisions of the Security Council to take enforcement measures under 
the provisions of the Charter of the United Nations, and on the par- 
ticipation therein, under his instructions, of the representative of the 
United States. 

Sec. 5.® (a) Notwithstanding the provisions of any other law, 
whenever the United States is called upon by the Security Council to 
apply measures which said Council has decided, pursuant to article 
41 of said Chapter, are to be employed to give eflect to its decisions 
under said Charter, the President may, to the extent necessary to 
apply such measures, through any agency which he may designate, 
and under such orders, rules, and regulations as majr be prescribed by 
him, investigate, regulate, or prohibit, in whole or in part, economic 
relations or rail, sea, air, postal, telegraphic, radio, and other means 
of communication between any foreign country or any national thereof 
or any person therein and the United States or any person subject to 
the jurisdiction thereof, or involving any property subject to the juris- 
diction of the United States. Any Executive order which is issued 
under this subsection and which applies measures against Southern 
Ehodesia pursuant to any United Nations Security Council Resolution 
may be enforced, notwithstanding the provisions of any other law.^ 
The President may exempt from such Executive order any ship- 
ment of chromium in any form which is in transit to the United 
States on the date of enactment of this sentence.^^ 

(b) Any person who willfully violates or evades or attempts to 
violate or evade any order, rule, or regulation issued by the President 
pursuant to paragraph (a) of this section shall, upon conviction, be 
fined not more than $10,000 or, if a natural person, be imprisoned for 
not more than ten years, or both ; and the officer, director, or agent of 
any corporation who knowingly participates in such violation or eva- 
sion shall be punished by a like fine, imprisonment, or both, and any 
property, funds, securities, papers, or otner articles or documents, or 
any vessel, together with her tackle, apparel, furniture, and equip- 
ment, or vehicle, or aircraft,^^ concerned in such violation shall be 
forfeited to the United States. 



•22U.S.C. 287a. 

»22U.S.C. 287b. 

8 22 U.S.C. 287c. See also text of Executive Order 11419 on page 327 and partial text 
of Public Law 92-156 on oaee 330. 

» Such an Executive orrier was issued on March 18. 1977. E.O. 11978 (amending: E.O. 
114W). For text, see Sec. 4(c) of E.O. 11419. pa^e 329. 

10 The final two sentences of subsection (a) were added by Public Law 95-12 (91 Stat. 22). 

11 The words "or aircraft" added by sec. 3 of Public Law 81-341 (63 Stat. 735). 



318 

(c)i2 (1) During the period in which measures are applied against 
Southern Ehodesia under subsection (a) pursuant to any United 
Nations Security Council Resolution, a shipment of any steel mill 
product (as such product may be defined by the Secretary) containing 
chromium in any form may not be released from customs custody for 
entry into the United States if — 

(A) a certificate of origin with respect to such shipment has 
not been filed with the Secretary ; or 

(B) in the case of a shipment with respect to which a certifi- 
cate of origin has been filed with the Secretary, the Secretary 
determines that the information contained in such certificate does 
not adequately establish that the steel mill product in such ship- 
ment does not contain chromium in any form which is of Southern 
Rhodesian origin ; 

unless such release is authorized bv the Secretary under paragraph 
(3) (B) or (C). 

(2) The Secretary shall prescribe regulations for carrying out this 
subsection. 

(3) (A) In carrying out this subsection, the Secretary may issue 
subpenas requiring the attendance and testimony of witnesses and 
the production of evidence. Any such subpena may, upon application 
by the Secretary, be enforced in a civil action in an appropriate 
United States district court. 

(B) The Secretary may exempt from the certification requirements 
of this subsection any shipment of a steel mill product containing 
chromium in any form which is in transit to the United States on the 
date of enactment of this subsection. 

(C) Under such circumstances as he deems appropriate, the Secre- 
tary may release from customs custody for entry into the United 
States, under such bond as he may require, any shipment of a steel 
mill product containing chromium in any form. 

(4) As used in this subsection — 

(A) the term "certficate of origin" means such certificate as 
the Secretary may require, with respect to a shipment of any steel 
mill product containing chromium in any form, issued by the 
government (or by a designee of such government if the Secretary 
is satisfied that such designee is the highest available certifying 
authority) of the country in which such steel mill product was 
produced certifying that the steel mill product in such shipment 
contains no chromium in any form which is of Southern Rhode- 
sian origin ; and 

(B) the term "Secretary" means the Secretary of the 
Treasury. 

Sec. G.^^ The President is autliorized to negotiate a special agree- 
ment or agreements with the Security Council which sliall be subject 
to the approval of the Congress by appropriate Act or joint resolution, 
providing for the numbers and types of armed forces, their degree of 
readiness and general locations, and the nature of facilities and assist- 
ance, including rights of passage, to be made available to the Security 



12 Subsection (c) was added by Public JjSlw 95-12 (91 Stat. 22). 
"22 r.S.C. 287d. 



319 

Council on its call for the purpose of maintaining international peace 
and security in accordance with article 43 of said Charter. The Presi- 
dent shaH not be deemed to require the authorization of the Congress 
to make available to the Security Council on its call in order to take 
action under article 42 of said Charter and pursuant to such special 
agreement or agreements the armed forces, facilities, or assistance pro- 
vided for therein : Provided^ That, except as authorized in section 7 
of this Act,^^ nothing herein contained shall be construed as an authori- 
zation to the President by the Congress to make available to the Secu- 
rity Council for such purpose armed forces, facilities, or assistance in 
addition to the forces, facilities, and assistance provided for in such 
special agreement or agreements. 

Sec. 7.^^ (a) Notwithstanding the provisions of any other law^, the 
President, upon the request by the United Nations for cooperative 
action, and to the extent that he finds that it is consistent with the 
national interest to comply with such request, may authorize, in sup- 
port of such activities of the United Nations as are specifically di- 
rected to the peaceful settlement of disputes and not mvolving the 
employment of armed forces contemplated by chapter VII of the 
United Nations Charter — 

(1) the detail to the United Nations, under such terms and 
conditions as the President shall determine, of personnel of the 
armed forces of the United States to serve as observers, guards, 
or in any nonconibatant capacity, but in no event shall more than 
a total of one thousand of such personnel be so detailed at any 
one time : Provided^ That while so detailed, such personnel shall 
be considered for all purposes as acting in the line of duty, in- 
cluding the receipt of pay and allowances as personnel of the 
armed forces of the United States, credit for longevity and retire- 
ment, and all other perquisites appertaining to such duty : Pro- 
vided further, That upon authorization or approval by the Presi- 
dent, such personnel may accept directly from the United Nations 
(a) any or all of the allowances or perquisites to which they are 
entitled under the first proviso hereof, and (b) extraordinary 
expenses and perquisites incident to such detail ; 

(2) the furnishing of facilities, services, or other assistance 
and the loan of the agreed fair share of the United States of any 
supplies and equipment to the United Nations by the Department 
of Defense, under such terms and conditions as the President 
shall determine; 

(3) the obligation, insofar as necessary to carry out the pur- 
poses of clauses (1) and (2) of this subsection, of any funds 
appropriated to the Department of Defense or any department 
therein, the procurement of such personnel, supplies, equipment, 
facilities, services, or other assistance as may be made available 
in accordance with the request of the United Nations, and the 
replacement of such items, when necessary, where they are fur- 
nished from stocks. 



" The words "except as authorized in section 7 of this Act" added by sec. 4 of Public 
Law 81-341 (63 Stat. 735). ^ „„ _ , . ,„, , 

!•-• Added bv sec. Ti of Public Law 81-841 (03 Stat. 735 ; 22 U.S.C. 287d-l). Section 12(a) 
of Public Law 81-216 (63 Stat. 591), changed the term "National Military Establishment 
to "Department of Defense". 



320 

(b) Whenever personnel or assistance is made available pursuant 
to the authority contained in subsection (a) (1) and (2) of this section, 
the President shall require reimbursement from the United Nations 
for the expense thereby incurred by the United States: Provided, 
That in exceptional circumstances, or when the President finds it to 
be in the national interest, he may waive, in whole or in part, the 
requirement of such reimbursement : Provided further, That when any 
such reimbursement is made, it shall be credited, at the option of the 
appropriate department of the Department of Defense, either to the 
appropriation, fund, or account utilized in incurring the obligation, 
or to an appropriate appropriation, fund, or account currently avail- 
able for the purposes for which expenditures were made. 

(c) In addition to the authorization of appropriations to the 
Department of State contained in section 8 of this Act, there is hereby 
authorized to be appropriated to the Department of Defense, or any 
department therein, such sums as may be necessary to reimburse sucjfi 
departments in the event that reimbursement from the United Nations 
is waived in whole or in part pursuant to authority contained in sub- 
section (b) of this section. 

(d) Nothing in this Act shall authorize the disclosure of any 
information or knowledge in any case in which such disclosure is 
prohibited bv any other law of the United States. 

Sec. 8.^^ There is hereby authorized to be appropriated annually to 
the Department of State, out of any money in the Treasury not 
otherwise appropriated, such sums as may be necessary for the pay- 
ment by the United States of its share of the expenses of the United 
Nations as apportioned by the General Assembly in accordance with 
article 17 of the Charter, and for all necessary salaries and expenses 
of the representatives provided for in section 2 hereof, and of their 
appropriate staffs, including personal services in the District of Co- 
lumbia and elsewhere, without regard to the civil-service laws and the 
Classificaton Act of 1923, as amended ; ^^ travel expenses without 
regard to the Stan rlnrdi zed Government Travel Regulations, as 
amended, the Travel Expense Act of 1949,^^ and section 10 of the Act 
of March 3, 1933, as amended,^^ and, under such rules and regulations 
as the Secretary of State may prescribe, travel expenses of families 
and transportation of effects of United States representatives and 
other personnel in going to and returning from their post of duty; 
allow«inces for living quarters, including heat, fuel, and light, as 
authorized by the Act approved June 26, 1930 (5 U.S.C. 118a) ; ^o cost- 
of-living allowances for personnel stationed abroad under such rules 
and regulations as the Secretary of State may prescribe; communica- 

i«22 U.S.C. 287e. This was formerly sec. 7, but was renumbered sec. 8 by sec. 6 of Public 
Law 81-341 (63 Stat. 736). 

Section 410 of the Foreifrn Assistance Act of 1971. Public Law 92-226, approved Feb- 
ruary 7, 1972, provides as follows : 

"The Congress strongly urges the President to undertake such negotiations as may be 
necessary to implement that portion of the recommendations of the Report of the Presi- 
dent's Commission for the Observance of the Twenty-fifth Anniversary of the United Na- 
tions (Itnown as the "Lodge Commission") which proposes that the portion of the regular 
assessed costs to be paid by the United States to the United Nations be reduced so that the 
United States is assessed in each year not more than 25 per centum of such costs assessed 
all members of the United Nations for that year." 

"Classification Act of 1923. as amended, is now the Classification Act of 1949, as 
amended (5 U.S.C. 305, 5101-5113, 5115. 5331-5338. 5341. 5342. 5509. 7154. 

18 Travel Expense Act of 1949 is now amended (5 V.^.C. 5701. 5702, 5704-5708). 

19 Section 10 of the Act of March 3. 1933. as amended (5 U.S.C. 5731). 

20 Act of June 26, 1930, is now amended (5 U.S.C. 5912). 



321 

tions services ; stenographic reporting, translating, and other services, 
by contract; hire of passenger motor vehicles and other local trans- 
portation ; rent of offices ; printing and binding without regard to sec- 
tion 11 of the Act of March 1, 1949 (44 U.S.C. Ill) ; allowances and 
expenses as provided in section 6 of the Act of July 30, 194G (Public 
Law 565, Seventy-ninth Congress) ,2^ and allowances and expenses 
cqnivnlont to those provided in section 901 (3) of the Foreign Service 
Act of 1946 (Public Law 724, Seventy-ninth Congress) ; ^^ the lease or 
rental (for periods not exceeding ten years) of living quarters for the 
use of the representative of the United States to the United Nations 
referred to in paragraph (a) of section 2 hereof, the cost of installa- 
tion and use of telephones in the same manner as telephone service is 
provided for use of the Foreign Service pursuant to the Act of August 
23, 1912, as amended (31 U.S.C. 679), and " unusual expenses similar 
to those authorized by section 22 of the Administrative Expenses Act 
of 1946, as amended ^* by section 311 of the Overseas Differentials and 
Allowances Act, incident to the operation and maintenance of such liv- 
ing quarters; and such other expenses as may be authorized by the 
Secretary of State ; and without regard to section 3709 of the Revised 
Statutes as amended (41 U.S.C. 5). 

Sec. 9.2® The President may, under such regulations as he shall pre- 
scribe, and notwithstanding section 3648 of the Revised Statutes (31 
U.S.C. 529) and section 5536 of title 5, United States Code— 

"(1) grant any employee of the staff of the United States Mis- 
sion to the United Nations designated by the Secretary of State 
who is required because of important representational responsi- 
bilities to live in the extraordinarily high-rent area immediately 
surrounding the headquarters of the United Nations in New York, 
New York, an allowance to compensate for the portion of ex- 
penses necessarily incurred by the employee for quarters and 
utilities which exceed the average of such expenses incurred by 
typical, permanent residents of the Metropolitan New York, New 
York, area with comparable salary and family size who are not 
compelled by reason of their employment to live in such high-rent 
area ; and 

"(2) provide such allowance as the President considers appro- 
priate, to each Delegate and Alternate Delegate of the United 
States to any session of the General Assembly of the United 
Nations who is not a permanent member of the staff of the United 
States Mission to the United Nations, in order to compensate each 
such Delegate or Alternate Delegate for necessary housing and 
subsistence expenses incurred by him with respect to attending 
any such session. 
Not more than forty-five employees shall be receiving an allowance 
under paragraph (1) of this section at any one time. 

^ Section ft of the Act of Tulv ."^O. 194f5. as amended (22 V.fi.C. 287r). 

22 Election 001^3) of tbe Foreijrn Service Act of 104fi is now codified as H U.S.C. 5921- 
5925 by Public Law 89-554. SO Stat. 378 at 510. Sentember 6. 1966. 

2' Section 311 fb) o<' Tinb^ic Taw S&-707 substituted the phrase "and unusual ex- 
penses . . ." for the previous clause. 

2* Section 22 of the Administrative Exnenses Act of 1946. as amended, is now codified 
as 5 r.S.e. 5913 bv Public Law 89-554. 80 Stat. 378 at 510. September 6. 1966. 

2= Added by sec. 15 of Public Law 93-120 (87 Stat. 454). 



2. The United Nations Headquarters Agreement Act 

Public Law 80-357 [SJ. Res. 144], 61 Stat. 756, approved August 4, 1947 

JOINT RESOLUTION authorizing the President to bring Into effect an agree- 
ment between the United States and the United Nations for the purpose of 
establishing the permanent headquarters of the United Nations In the United 
States and authorizing the taking of measures necessary to facilitate com- 
pliance with the provisions of such agreement, and for other purposes.' 

Whereas the Charter of the United Nations was signed on behalf of 
the United States on June 26, 1945, and was ratified on August 8, 
1945, by the President of the United States, by and with the advice 
and consent of the Senate, and the instrument of ratification of the 
said Charter was deposited on August 8, 1945 ; and 
Whereas the said Charter of the United Nations came into force with 

respect to the United States on October 24, 1945 ; and 
Whereas article 104 of the Charter provides that "The Organization 
shall enjoy in the territory of each of its Members such legal ca- 
pacity as may be neceessary for the exercise of its functions and the 
fulfillment of its purposes" ; and 
Whereas article 105 of the Charter provides that : 

"1. The Organization shall enjoy in the territory of each of its 
Members such privileges and immunities as are necessary for the 
fulfillment of its purposes. 

"2. Representatives of the Members of the United Nations and 
officials of the Organization shall similary enjoy such privileges 
and immunities as are necessary for the independent exercise of 
their functions in connection with the Organization. 

"3. The General Assembly may make recommendations with a 
view to determining the details of the application of paragraphs 
1 and 2 of this article or may propose conventions to the Members 
of the United Nations for this purpose." ; and 
Whereas article 28 and other articles of the Charter of the United 
Nations contemplate the establishment of a seat for the permanent 
headquarters of the Organization ; and 
Whereas the interim arrangements concluded on June 26, 1945, by the 
governments represented at the United Nations Conference on 
International Organization instructed the Preparatory Commission 
established in pursuance of the arrangements to "make studies and 
prepare recommendations concerning the location of the permanent 
headquarters of the Organization" ; and 
Whereas during the labors of the said Preparatory Commission, the 
Congress of the United States in H. Con. Res. 75, passed unani- 
mously by the House of Representatives December 10, 1945, and 
agreed to unanimously by the Senate December 11, 1945, invited the 
United Nations "to locate the seat of the United Nations Organiza- 
tion within the United States" ; and 

» 22 U.S.C. 287 footnote. 

(322) 



323 

Whereas the General Assembly on December 14, 1946, resolved "that 
the permanent headquarters of the United Nations shall be estab- 
lished in New York City in the area bounded by First Avenue, East 
Forty-eighth Street, the East River, and East Forty-second Street" ; 
and 
Whereas the General Assembly resolved on December 14, 1946, "That 
the Secretary- General be authorized to ne^tiate and conclude with 
the appropriate authorities of the United States of America an 
agreement concerning the arrangements required as a result of the 
establishment of the permanent headquarters of the United Nations 
in the city of New York" and to be guided in these negotiations by 
the provisions of a preliminary draft agreement which had been 
negotiated by the Secretary-General and the Secretary of State of 
the United States ; and 
Whereas the General Assembly resolved on December 14, 1946, that 
pending the coming into force of the agreement referred to above 
"the Secretary-General be authorized to negotiate and conclude 
arrangements with the appropriate authorities of the United States 
of America to determine on a provisional. basis the privileges, immu- 
nities, and facilities needed in connection with the temporary head- 
quarters of the United Nations" ; and 
Whereas the Secretary of State of the United States, after consulta- 
tion with the appropriate authorities of the State and city of New 
York, signed at Lake Success, New York, on June 26, 1947, on behalf 
of the United States an agreement with the United Nations regard- 
ing the headquarters of the United Nations, which agreement is 
incorporated herein ; and 
Whereas the aforesaid agreement provides that it shall be brought into 
effect by an exchange of notes between the United States and the 
Secretary-General of the United Nations : Therefore, be it 
Resolved hy the Senate and House of Representatives of the United 
States of Arherica in Congress assemhled^ That the President is hereby 
authorized to bring into effect on the part of the United States the 
agreement between the United States of America and the United Na- 
tions regarding the headquarters of the United Nations, signed at 
Lake Success, New York, on June 26, 1947 (hereinafter referred to as 
the "agreement"), with such changes therein not contrary to the gen- 
eral tenor thereof and not imposing any additional obligations on the 
United States as the President may deem necessary and appropriate, 
and at his discretion, after consultation with the appropriate State 
and local authorities, to enter into such supplemental agreements with 
the United Nations as may be necessary to fulfill the purposes of the 
said agreement : Provided^ That any supplemental agreement entered 
into pursuant to section 5 of the agreement incorporated herein shall 
be submitted to the Congress for approval. The agreement follows: 



3. Appropriations Limitation on Contributions to International 

Organizations ^ 

Partial text of Public Law 92-544 [H.R. 14989], 86 Stat. 1109, 1110, approved 

October 25, 1972 

AN ACT Making appropriations for the Departments of State, Justice, and Com- 
merce, tlie Judiciary, and related agencies for the fiscal year ending June 30, 
1973, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That the following 
sums are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the Departments of State, Justice, and Commerce, 
the Judiciary, and related agencies for the fiscal year ending June 
30. 1973, and for other purposes, namely : 

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS ^ 

* * * Provided^ That after December 31, 1973, no appropria- 
tion is authorized and no payment shall be made to the United Nations 
or any affiliated agency in excess of 25 per centum ^ of the total annual 
assessment of such organization. Appropriations are authorized and 

1 Restriction In Public Law 82-495, 66 Stat. 550, July 10, 1952. Department of State 
Appropriation Act, 1953, is considered permanent legislation with respect to the inter- 
national organizations not exempted. See 22 U.S.C. 262b. It reads as follows : 

"No representative of the United States Government in any international organization 
after fiscal year 1953 shall make any commitment requiring the appropriation of funds 
for a contribution by the United States in excess of 33 1/^ per centum of the budget of any 
international organization for which the appropriation for the United States contribution 
is contained in this Act : Provided, That in exceptional circumstances necessitating a 
contribution by the United States in excess of 33% per centum of the budget, a commit- 
ment requiring a United States appropriation of a larger proportion may be made after 
consultation by United States representatives in the organization or other appropriate 
officials of the Department of State with the Committees on Appropriations of the Senate 
and House of Representatives : Provided, however. That this section shall not apply to the 
United States representatives to the Inter-American organizations, Caribbean Commission 
and the Joint Support program of the International Civil Aviation Organization." 

This provision was first included in section 602 of Public Law 82-188, 65 Stat. 599. 
October 22, 1951, Departments of State, Justice, Commerce, and the Judiciary Appropria- 
tion Act, 1952. 

The exemption granted to the Caribbean Commission and the Joint Support program of 
the International Civil Aviation Organization was added by Public Law 83-195, 67 Stat. 
368. August 5, 1953. Department of State Appropriation Act, 1954. 

Note : In addition, there are specific legislative limitations on the percentage contribu- 
tion of the United States to the following organizations : 

(1) 33% percent to the World Health Organization (Act of July 14, IMS; 22 U.S.C. 
290(b). However, Sec. 103 of the Foreign Relations Authorization Act, Fiscal Year 1978 
(91 Stat. 844), stated that notwithstanding the provisions of Public Law 92-544, 

$7,281,583 of the FY 1978 appropriation authorization for "International Organizations 
and Conferences" is authorized to be payed to the World Health Organization for any 
unpaid balance of the U.S. assessed contribution to such organization for the calendar 
years 1974 through 1977. See page 446 for complete text ; 

(2) 33 Va percent to the Food and Agriculture organization (Act of July 31, 1945 ; 22 
U.S.C. 279a) ; 

(3) 25 percent to the International Labor Organization (Act of June 30, 1948 ; 22 U.S.C. 
272a) ' 

(4) '25 percent to the NATO Parliamentary Conference (Act of July 11, 1956 ; 22 U.S.C. 
1928b) ; and , . . . x 

(5) Not to exceed 20 per centum of the total contributions assessed for any period to 
administer the International Coffee Agreement (TIAS 5505 ; 14 UST 1911, September 28, 
1962), and such amount shall not exceed $150,000 for any fiscal year, to the International 
Coffee Organization (section 6 of Public Law 89-23. 79 Stat. 113, approved May 22, 1965). 

(324) 



325 

contributions and payments may be made to the following organiza- 
tions and activities notwithstanding that such contributions and pay- 
ments are in excess of 25 per centum of the total annual assessment of 
the respective organization or 331/^ per centum of the budget for the 
respective activity: the International Atomic Energy Agency, the 
joint financing program of the International Civil Aviation Organi- 
zation, and contributions for international peacekeeping activities 
conducted by or under the auspices of the United Nations or through 
multilateral agreements.^ 



« Sec. 203 of Public Law 94-141, Foreign Relations Authorization Act, Fiscal Year 1976, 
Inserted a period after "organization", struck out the text following it, and inserted the 
language beginning with "Appropriations are authorized". Formerly, the section following 
"organization" read "except that this proviso shall not apply to the International Atomic 
Energy Agency and to the joint financing program of the International Civil Aviation 
Organization." 

For further limitations on contributions see the Foreign Assistance Act of 1961. as 
amended Sec. 301(b) regarding United Nations Development Program and Sec. 302(h) 
regarding UNESCO. Public Law 94-441 (90 Stat. 1465) appropriated $187,000,000 for 
contributions to International organizations for fiscal year 1977. 



4. Rhodesia Resolution 
a. To Halt the Importation of Rhodesian Chrome 

Partial text of Public Law 95-12 [H.R. 1746], 91 Stat. 22, approved March 18, 1977 

AN ACT To amend the United Nations Participation Act of 1945 to halt the 
importation of Rhodesian chrome. 

* * * * * • « 

SeCo 2. (a) Upon the enactment of this Act, the President may 
suspend the operation of the amendments contained in this Act ^ if 
he determines that such suspension would encourage meaningful nego- 
tiations and further the peaceful transfer of governing power from 
minority rule to majority rule in Southern Rhodesia. Such suspension 
shall remain in effect for such duration as deemed necessary by the 
President. 

(b) If the President suspends the operation of the amendments 
contained in this Act, he shall so rep>ort to the Congress. In addition, 
the President shall report to the Congress when he terminates such 
suspension. 

(c) If the President suspends the operation of the amendments 
contained in this Act, any reference in those amendments to date of 
enactment shall be deemed to be a reference to the date on which 
such suspension is terminated by the President. 



1 All amendments contained in this Act are incorporated into Sec. 5 of the United Na- 
tions Participation Act of 1945. For text of Sec. 5, see page 317. 

(326) 



b. Executive Order 11419, as amended ^ 

Executive Order 11419, July 19, 1968, 33 F.R. 10837, 3 CFR 1966-70 Comp., p. 737, 
as amended by Executive Order 11978, March 18, 1977, 42 F.R. 15403 

Relating to Trade and Other Transactions Involving Southern 

Rhodesia 

By virtue of the authority vested in me by the Constitution and laws 
of the United States, including section 5 of the United Nations Partic- 
ipation Act of 1945 (59 Stat. 620), as amended (22 U.S.C. 287c), and 
section 301 of Title 3 of the United States Code, and as President of 
the United States, and considering the measures which the Security 
Council of the United Nations by Security Council Resolution No. 
253 adopted May 29, 1968, has decided upon pursuant to article 41 of 
the Charter of the United Nations, and which it has called upon all 
members of the United Nations, including the United States, to apply, 
it is hereby ordered : 

Section 1. In addition to the prohibitions of section 1 of Executive 
Order No. 11322 of January 5, 1967, the following are prohibited ef- 
fective immediately, notwithstanding any contracts entered into or 
licenses granted before the date of this Order : 

(a) Importation into the United States of any commodities or 
products originating in Southern Rhodesia and exported therefrom 
after May 29, 1968.2 

(b) Any activities by any person subject to the jurisdiction of the 
United States which promote or are calculated to promote the export 
from Southern Rhodesia after May 29, 1968, of any commodities or 
products originating in Southern Rhodesia, and any dealings by any 
such person in any such commodities or products, including in par- 
ticular any transfer of funds to Southern Rhodesia for the purposes 
of such activities or dealings; Provided^ however. That the prohibi- 
tion against the dealing in commodities or products exported from 
Southern Rhodesia shall not apply to any such commodities or prod- 
ucts which, prior to the date of this Order, had been lawfully imported 
into the United States. 

(c) Carriage in vessels or aircraft of United States registration or 
under charter to any person subject to the jurisdiction of the United 
States of any commodities or products originating in Southern Rho- 
desia and exported therefrom after May 29, 1968. 

(d) Sale or supply by any person subject to the jurisdiction of 
the United States, or any other activities by any such person which 
promote or are calculated to promote the sale or supply, to any person 
or body in Southern Rhodesia or to any person or body for the pur- 
poses of any business carried on in or operated from Southern Rho- 

iSee Executive Order 11796. July 30, 1974. 89 F.R. 27891. Aug. 2. 1974; and see. also. 
Exenntive Or'^er 11810. Sent. 30. 1974. 39 F.R. 3.^.567. Oct. 2. 1974. 

2 This prohibition affected bv Public Law 92-156 (85 Stat. 427) which contained an 
amendment to the Strategic and Critical Materials Stockpiling: Act (see paee •"•"0). How- 
ever, the affect on this prohibition contained in Public Law 92-156 was removed bv Public 
Law <>.5-12 which amended Sec. 5 of the United Nations Participation Act of 194'o (see 
page 317). 

(327) 



328 

desia of any commodities or products. Such activities, including car- 
nage in vessels or aircraft, may be authorized with respect to supplies 
intended strictly for medical purposes, educational equipment and 
material for use in schools and other educational institutions, publica- 
tions, news material, and foodstuffs required by special humanitarian 
circumstances. 

(e) Carriage in vessels or aircraft of United States registration 
or under charter to any person subject to the jurisdiction of the United 
States of any commodities or products consigned to any person or 
body in Southern Khodesia. or to any person or body for the purposes 
of any business carried on in or operated from Southern Rhodesia. 

(f ) Transfer by any person subject to the jurisdiction of the United 
States directly or indirectly to any person or body in Southern Rho- 
desia of any funds or other financial or economic resources. Payments 
exclusively for pensions, for strictly medical, humanitarian or edu- 
cational purposes, for the provision of news material or for foodstuffs 
required by special humanitarian circumstances may be authorized. 

(g) Operation of any United States air carrier or aircraft owned 
or chartered by any person subject to the jurisdiction of the United 
States or of United States registration (i) to or from Southern Rho- 
desia or (ii) in coordination with any airline company constituted or 
aircraft registered in Southern Rhodesia. 

Sec. 2. The functions and responsibilities for the enforcement of 
the foregoing prohibitions, and of those prohibitions of Executive 
Order No. 11322 of January 5, 1967 specified below, are delegated as 
follows : 

(a) To the Secretary of Commerce, the function and responsibility 
of enforcement relating to — 

(i) the exportation from the United States of commodities and 
products other than those articles referred to in section 2(a) of Execu- 
tive Order No. 11322 of January 5, 1967; and 

(ii) the carriage in vessels of any commodities or products the 
carriage of which is prohibited by section 1 of this Order or by sec- 
tion 1 of Executive Order No. 11322 of Januarv 5, 1967. 

(b) To the Secretary of Transportation, the ftmction and responsi- 
bility of enforcement relating to the operation of air carriers and air- 
craft and the carriage in aircraft of any commodities or products the 
carriagfe of which is prohibited by section 1 of this Order or by section 

1 of Executive Order No. 11322 of January 5, 1967. 

(c) To the Secretary of the Treasury, the function and responsi- 
bility of enforcement to the extent not previously delegated in section 

2 of Executive Order No. 11322 of January 5, 1967, and not delegated 
under subsections (a) and (b) of this section. 

Sec. 3. The Secretary of the Treasury, the Secretary of Commerce, 
and the Secretary of Transportation shall exercise any authority 
which such officer may have apart from the United Nations Participa- 
tion Act of 1945 or this Order so as to give full effect to this Order and 
Security Council Resolution No. 253. 

Sec. 4. (a) In carrying out their respective functions and responsi- 
bilities under this Order, the Secretary of the Treasury, the Secre- 
tary of Commerce, and the Secretary of Transportation shall consult 
with the Secretary of State. Each such Secretary shall consult, as 
appropriate, with other government agencies and private persons. 



329 

(b) Each such Secretary shall issue such regulations, licenses or 
other authorizations as he considers necessary to carry out the pur- 
poses of this Order and Security Council Resolution No. 253. 

(c) ^ The Secretary of the Treasury may exempt from the provisions 
of this Order, and Executive Order No. 11322, as amended, any ship- 
ment of chromium in any form which is in transit to the United States 
on March 18, 1977. 

Sec. 5. (a) The term "United States," as used in this Order in a 
geographical sense, means all territory subject to the jurisdiction of 
9ie United States. 

(b) The term "person" means an individual, partnership, associa- 
tion or other unincorporated body of individuals, or corporation. 

Sec. 6. Executive Order No. 11322 of January 5, 1967, implementing 
United Nations Security Council Resolution No. 232 of December 16, 
1966, shall continue in effect as modified by sections 2, 3, and 4 of 
this Order. 



=« Subsection (c) was added by Executive Order 11*978, March 18, 1977, 42 F.R. 15403. 



I 



20-594 O - 78 - 22 



c. Armed Forces Appropriation Authorization, 1972 

Partial text of Public Law 92-156 [H.R. 8687], 85 Stat. 423, approyed 

November 17, 1971 

AN ACT To authorize appropriations during the fiscal year 1972 for procurement 
of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and 
other weapons, and research, development, test, and evaluation for the Armed 
Forces, and to authorize real estate acquisition and construction at certain 
installations in connection with the Safeguard anti-ballistic missile system, and 
to prescribe the authorized personnel strength of the Selected Reserve of each 
Reserve component of the Armed Forces, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

' ♦ * ♦ ♦ « ♦ ♦ 

Sec. 503. The Stratecric and Critical Materials Stock Piling Act (60 
Stat. 596; 50 U.S.C. 98-98h) is amended (1) by redesignating section 
10 as section 11, and (2) by inserting after section 9 a new section 10 
as follows : 

"Sec. 10. Notwithstanding any other provision of law, on and after 
January 1, 1972, the President may not prohibit or regulate the impor- 
tation into the United States of any material determined to be strategic 
and critical pursuant to the provisions of this Act, if such material is 
the product of any foreign country or area not listed as a Communist- 
dominated country or area in general headnote 3(d) of the Tariff 
Schedules of the United States (19 U.S.C. 1202), for so long as the 
importation into the United States of material of that kind which is 
the product of such Communist-dominated countries or areas is not 
prohibited by any provision of law." 

(330) 



5. United Nations Peacekeeping Forces in the Middle East 

Public Law 94-37 [S. 818], 89 Stat. 216, approved June 19, 1975 

AN ACT To authorize United States pajmaents to the United Nations for ex- 
penses of the United Nations peacekeeping forces in the Middle East, and for 
other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ That there is hereby 
authorized to be appropriated to the Department of State such sums 
as may be necessary from time to time for payment by the United 
States of its share of the expenses of the United Nations peacekeeping 
forces in the Middle East, as apportioned by the United Nations in 
accordance with article 17 of the United Nations Charter, notwith- 
standing the limitation on contributions to international organizations 
contained in Public Law 92-544 (86 Stat. 1109, 1110).^ 

1 For text, see p. 324. 

(331) 



I 



6. Response to United Nations Resolution on Zionism 
House Resolution 855, 94th Congress, agreed to November 11, 1975^ 

Whereas the United States, as a founder of the United Nations 
Organization has a fundamental interest in promoting the purposes 
and principles for which that organization was created; and 
Whereas in Article I of the Charter of the United Nations the stated 
purpose of the United Nations include: "To achieve international 
cooperation in solving international problems of an economic, social, 
cultural, or humanitarian character, and in promoting and encour- 
aging respect for human rights and for fundamental freedoms for 
all without distinction as to race, sex, language or religion;" and 
Whereas the General Assembly of the United Nations decided to 
launch on December 10, 1973, a Decade of Action to Combat Racism 
and Racial Discrimination and a program of action which the 
United States supported and in which it desires to participate ; and 
Whereas the United Nations General Assembly on November 10, 1975, 
adopted a resolution which describes Zionism as a form of racism 
thereby identifying it as a target of the Decade for Action to 
Combat Racism and Discrimination ; and 
Whereas the extension of the program of the Decade to include a 
campaign against Zionism brings the United Nations to a point 
of encouraging anti-Semitism, one of the oldest and most virulent 
forms of racism known to human history: Now, therefore, be it 
Resolved^ That the House of Representatives sharply condemns 
the resolution adopted by the General Assembly on November 10. 
1975, in that said resolution encourages anti-Semitism by wrongly 
associating and equating Zionism with racism and racial discrimina- 
tion, thereby contradicting a fundamental purpose of the United 
Nations Charter; and be it 

Resolved^ That the House strongly opposes any form of participa- 
tion by the United States Government in the Decade for Action to 
Combat Racism and Racial Discrimination so long as that Decade 
and program remain distorted and compromised by the aforemen- 
tioned resolution naming Zionism as one of the targets of that strug- 
gle ; and be it 

Resolved^ That the House calls for an energetic effort by all those 
concerned with the adherence of the United Nations to the purposes 
stated in its Charter to obtain reconsideration of the aforementioned 
resolution with a view to removing the subject of Zionism, which is 
a national but in no way a racist philosophy, from the context of any 
programs and discussions focusing on racism or racial discrimination. 



iTwo similar resolutions were passed by the Senate in the 94th Confess: Senate 
Resolution 288, apreed to October 28. 1975. and Senate Concurrent Resolution 73. agreefl 
to November 12. 1975. 

(332) 



7. United Nations Environment Program Participation Act of 

1973 

Public Law 93-188 [H.R. 6788], 87 Stat. 713, approved December 15, 1973 

AN ACT To provide for participation by the United States in the United Nations 

environment program. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "United Nations Environment Program Participation 
Act of 1973". 

Sec. 2. It is the policy of the United States to participate in coordi- 
nated international efforts to solve environmental problems of global 
and international concern, and in order to assist the implementation of 
this policy, to contribute funds to the United Nations Environmental 
Fimd for the support of international measures to protect and improve 
the environment. 

Sec. 3. There is authorized to be appropriated $40,000,000 for con- 
tributions to the United Nations Environment Fund, which amount is 
authorized to remain available until expended, and which may be used 
upon such terms and conditions as the President may specify: Pro- 
vided^ That not more than $10,000,000 may be appropriated for use 
in fiscal year 1974.^ 

1 The Foreign Assistance Appropriations Act, 1977 provided $10,000,000 for necessary 
expenses to carry out tlie provisions of section 2. 

(333) 



8. Privileges and Immunities 

a. The International Organizations Immunities Act, as amended 

Partial text of Public Law 79-291 [H.R. 4489], 59 Stat. 669, approved Decem- 
ber 29, 1945,' as amended by Public Law 89-353 [H.R. 8210], 80 Stat. 5, approved 
February 2, 1966; and by Public Law 93-161 [H.R. 8219], 87 Stat. 635. approved 
November 27, 1973 

AN ACT To extend certain privileges, exemptions, and Immunities to Inter- 
national organizations and to the oflScers and employees thereof, and for 
other purposes. 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

TITLE I 

Section 1.^ For the purposes of this title, the term "international 
organization" means a public international organization in which the 
United States participates pursuant to any treaty or under the 
autliority of any Act of Congress authorizing such participation or 
making an appropriation for such participation, and which snail have 
been designated by the President through appropriate Executive order 
as being entitled to enjoy the privileges, exemptions, and immunities 
herein provided. The President shall be authorized, in the light of 
the functions performed by any such international organization, by 
appropriate Executive order to withhold or withdraw from any such 
organization or its officei-s or employees any of the privileges, exemp- 
tions, and innnunities provided for in this title (including the amend- 
ments made by this title) or to condition or limit the enjoyment by any 
such organization or its officers or employees of any such privilege, 
exemption, or immunity. The President shall be authorized, if in his 
judgment such action should be justified by reason of the abuse by an 
international organization or its officers and employees of the privi- 
leges, exemptions, and immunities herein provided or for any other 
reason, at any time revoke the designation of any international 
organization under this section, whereupon the international organi- 
Ziition in question shall cease to be classed as an international orga- 
nization for the purposes of this title.^ 

» Title II Is unrelated to the United Nations and has been omitted. 

• 22 use. 288 

"The following International organizations are currently designated by the President 
ns public International organizations entitled to enjoy the privileges, exemptions and 
Immunities of the International Organlzntlons Immunities Act : 

(334) 



335 

Sec. 2/ Tnteniational orgnnizations shall enjoy the status, immu- 
nities, exemptions, and privileges set forth in this section, as follows : 

(a) International organizations shall, to the extent consistent with 
the instrument creating them, possess the capacity — 

(i) to contract; 

/ii) to acquire and dispose of real and personal property; 
(iii) to institute legal proceedings. 

(b) International organizations, their property and their assets, 
wherever located, and by whomsoever held, shall enjoy the same 
imiininity fiom suit nnd ev(My foim of judicial process as is enjoyed 
by foreign governments, except to the extent that such organizations 

Executive Date Organization 

Order No. ' 

9698 Feb 19.1946 The Food and Agriculture Organization. 

The International Labor Organization. 

The United Nations. 
9781 July 11.1946 Inter- American Institute of Agricultural Sciences. 

Inter- American Statistical Institute. 

International Bank for Reconstruction and Development. 

International Monetary Fund. 
9823 Jan. 24,1947 International Wheat Advisory Committee. 

(International Wheat Council.) 
9663 May 31.1947 United Nations Educational, Scientific, and Cultural Organisa- 
tion. 

International Civil Aviation Organization. 

International Telecommunication Union. 

9911 Dec. 19,1947 International Cotton Advisory Committee. 

9972 June 25. 1948 International Joint Commission, United States and Canada. 

10025 Dec. 30,1948 World Health Organization. 

10086 Nov. 25, 1949 South Pacific Commission. 

10133 June 27,1950 Organization for European Economic Cooperation. 

10228 Mar. 26,1951 Inter-American Defense Board. 

10335 Mar. 28,1952 Provisional Intergovernmental Committee for the Movement of 

Migrants from Europe (now the Intergovernmental Committee 
for European Migration). 

10681 June 3,1964 Organization of American States (includes the Pan American 

Union, previously designated Feb. 19, 1946, by Executive 
Order No. 9698). 

10676 Sept. 1,1966 World Meteorological Organization. 

10680 Oct. 2,1956 International Finance Corporation. 

10727 Aug. 31.1957 International Atomic Energy Agency (included the Preparatory 

Commission of the International Atomic Energy Agency). 

Universal Postal Union. 

10769 May 29,1968 International Hydrographic Bureau. 

10795 Dec. 13,1968 Intergovernmental Maritime Consultative Organization. 

10864 Feb. 18.1960 Pan American Health Organization (includes the Pan American 

Sanitary Bureau, previously designated July 11, 1946, by 
Executive Order No. 9751). 

10873 Apr. 8,1960 Inter-American Development Bank. 

10983. Dec. 39,1951 Caribbean Organization. 

11069 Oct. 23,1962 Inter-American Tropical Tuna Commission. 

Great Lakes Fishery Commission. 

International Pacific Halibut Commission. 

11225 May 22.1966 International Coffee Organization. 

11227 June 2,1966 Interim Communications Satellite Committee. 

11277 Apr. 30,1966 International Telecommunications Satellite Consortium. 

11283 May 27,1966 International Cotton Institute. 

11334 Mar. 7,1967 Asian Development Bank. 

11363 July 20,1967 International Secretariat for Volunteer Service. 

11372 Sept. 18,1967 Lake Ontario Claims Tribunal (status revoked by Executive 

Orderll439, Dec. 7, 1968). 

11484 Sept. 29,1969 United International Bureaux for the Protection of Intellectual 

Property (BIRPI). 

11696 June 5,1971 CustoTis Cooperation Council. 

11718 May 14,1973 International Telecommunications Satellite Organisation. 

11760 Jan. 17,1974 European Space Research Organization (ESRO) (superseding 

Executive Orders 11318 and 11351). 

11767 Feb. 19. 1974 Organization of African Unitv. 

11866 .Tune 20, 1975 World Intellectual Property Organization. 

11966 Jan. 19, 1977 International Development -Association. 

Int«>mational Centre for Settlpment of Investment Disputes. 

International Telecommunications Satellite Organization. 

11977 Mar. 14,1977 The African Development fund. 

The International Fertilizer Development Center. 

•22 D.8.C 288a. 



336 

uniy expressly waive their immunity for the purpose of any proceed- 
ings or by the terms of any contract. 

(c) Property and assets of international organizations, wherever 
located and by whomsoever held, shall be immune from search, unless 
such immunity be expressly waived, and from confiscation. The 
archives of international organizations shall be inviolable. 

(d) Insofar as concerns customs duties and internal -revenue taxes 
imposed upon or by reason of importation, and the procedures in con- 
nection therewith; the registration of forei^ agents; and the treat- 
ment of official communications, the privileges, exemptions, and 
immunities to which international organizations shall be entitled shall 
be those accorded under similar circumstances to foreign governments. 

Sec. 3.'' Pursuant to regulations prescribed by the Commissioner 
of Customs with the approval of the Secretary of the Treasury, the 
baggage and effects oi alien officers and employees of international 
organizations, or of aliens designated by foreign governments to serve 
as their representatives in or to such organizations, or of the families, 
suites, and servants of such officers, employees, or representatives shall 
be admitted (when imported in connection with the arrival of the 
owner) free of customs duties and free of internal-revenue taxes im- 
posed upon or by lensou of importation. 

Sec. 4.''' The Internal Kevenue Code is hereby amended as follows: 
(a)^ Effective with respect to taxable years beginning after De- 
cember 31, 1943, section 116(c), relating to the exclusion from gross 
income of income of foreign governments, is amended to read as 
follows : 

"(c) Income or Foreign Governments and of Ini'ernational 
Organizations. — The income of foreign governments or international 
organizations received from investments in the United States in stocks, 
bonds, or other domestic securities, owned by such foreign governments 
or by international organizations, or from interest on deposits in banks 
in the United States of moneys belonging to such foreign govern- 
ments or international organizations, or from any other source 
within the United States, shall not be included in gross income and 
shall be exempt from taxation under this subtitle." 

(b) ® Effective with respect to taxable years beginning after De- 
cember 31, 1943, section 116(h)(1), relating to the exclusion from 
gross income of amounts paid employees of foreign governments, is 
amended to read as follows : 

"(1) Rule tor exclusion. — Wages, fees, or salary of any em 
ployee of a foreign government or of an international organiza- 
tion or of the Commonwealth of the Philippines (including a 
consular or other officer, or a nondiplomatic representative), 
received as compensation for official services to such government, 
international organization, or such Commonwealth — 

"(A) If such employee is not a citizen of the United States, or 
is a citizen of the Commonwealth of the Philippines (whether or 
not a citizen of the United States) ; and 

"(B) If, in the case of an employee of a foreign government 
or of the Commonwealth of the Philippines, the services are of a 

» 22 U.S.C. 288b. 

« The provisions of sec. 4 are contained in title 26 of the United States Code, as noted 
below. 

' 26 U.S.C. 892. 
»26 U.S.C. 893(a) 



337 

character similar to those performed by employees of the Govern- 
ment of the United States in foreign countries or in the Common- 
wealth of the Philippines, as the case may be ; and 

"(C) If, in the case of an employee of a foreign government 
or the Commonwealth of the Pliilippines, the. foreign government 
or the Commonwealth grants an equivalent exemption to em- 
ployees of the Government of the United States performing 
similar services in such foreign country or such Commonwealth, 
as the case may be." 

(c) Effective January 1, 1946, section 142G(b), deiiuiug the term 
"employment" for the purposes of the Federal Insurance Contribu- 
tions Act, is amended (1) by striking out the word "or" at the end of 
paragraph (14), (2) by striking out the period at the end of para- 
graph (15) and insertmg in lieu thereof a semicolon and the word 
"or", and (3) by inserting at the end of the subsection the following 
new paragraph : 

"(16)" Service performed in the einploy of an international 
organization." 

(d) Effective January 1, 1946, section lG07(c), defining the term 
"employment" for the purposes of the Federal Unemployment Tax 
Act, is amended (1) by striking out the word "or" at the end of 
paragraph (14), (2) by striking out the period at the end of para- 
gi*apn (15) and inserting in lieu thereof a semicolon and the word 
"or," and (3) by inserting at the end of the subsection the following 
new paragraph ; 

"(16)'° Service performed in fhe employ of an international 
organization." 

(e)^' Section 1621(a) (5), relating to the definition of "wages" for 
the purpose of collection of income tax at the source, is amended by 
inserting after the words "foreign government" the words "or an 
international organization". 

(f)'* Section 3466(a), relating to exemption from communications 
taxes is amended by inserting immediately after the words "the Dis- 
trict of Columbia" a comma and the words "or an international 
organization". 

(g)" Section 3469(f)(1), relating to exemption from the tax on 
transportation of persons, is amended by inserting immediately after 
the words "the District of Columbia" a comma and the words "or 
an international organization". 

(h)'' Section 3475(b)(1), relating to exemption from the tax on 
transportation of pioperty, is amended by inserting immediately after 
the words "the District of Columbia" a comma and the words "or an 
international organization". 

(i) Section 3797(a), relating to definitions, is amended by adding 
at the end thereof a new paragraph as follows : 

"(18)^* International ORGANIZATION. — The term 'intei*national 
organization' means a public international organization entitled 

•26 U.S.C. 3121(b) (15). 

'"26 U.S.C. 3306(0(16). 

"26 U.S.C. 3401(a)(5). 

'«26 U.S.C 4253(c). 

'•"'20 U.S.C. 4263(b). 

"26 U.S.C. 4272(d), relating to exemption from tax on transportation propertj'. 
repealed with 26 U.S.C. 4271-4273 by Public Law 85-475, sec. 4(a), June 30, 1958. 72 
Stat 260. 

«2« U.S.C. 7701(a)(18). 



338 

to enjoy privileges, exemptions, and immunities as an interna- 
tional organization under the International Organizations Immu- 
nities -A.ct *' 
Sec. 5. (a) ^« Effective January 1, 1946, section 209(b) of the Social 
Security Act, defining the term "employment" for the purposes of 
title II of the Act, is amended (1) by striking out the word "or" 
at the end of paragraph (14), (2) by striking out the period at the 
end of paragraph (15) and inserting in lieu thereof a semicolon and 
the word "or", and (3) by inserting at the end of the subsection the 
following new paragraph : 

"(16) Service performed in the employ of an international 
organization entitled to enjoy privileges, exemptions, and im- 
munities as an international organization under the International 
Organizations Immunities Act." 
(b)^^ No tax shall be collected under title VIII or IX of the Social 
Security Act or under the Federal Insurance Contributions Act or 
the Federal Unemployment Tax Act, with respect to services ren- 
dered prior to January 1, 1946, which are described in paragraph (16) 
of sections 1426(b) and 1607(c) of the Internal Revenue Code, as 
amended, and any such tax heretofore collected (included penalty 
and interest with respect thereto, if any) shall be refunded in accord- 
ance with the provisions of law applicable in the case of erroneous 
or illegal collection of the tax. No interest shall be allowed or paid 
on the amount of any such refund. No payment shall be made under 
title II of the Social Security Act with respect to services rendered 
prior to January 1, 1946, which are described in paragraph (16) of 
section 209 (b) of such Act, as amended. 

Sec. 6.^® International organizations shall be exempt from all prop- 
erty taxes imposed by, or under the authority of, any Act of Congress, 
including such Acts as are applicable solely to the District of Columbia 
or the Territories. 

Sec. 7. (a)^^ Persons designated by foreign governments to serve as 
their representatives in or to international organizations and the offi- 
cers and employees of such organizations, and members of the imme- 
diate families of such representatives, officers, and employees residing 
with them, other than nationals of the United States, shall, insofar 
as concerns laws regulating entry into and departure from the United 
States, alien registration and fingerprinting, and the registration of 
foreign agents, be entitled to the same privileges, exemptions, and 
immunities as are accorded under similar circumstances to officers and 
employees, respectively, of foreign governments, and members of their 
families. 

(b)2° Representatives of foreign governments in or to international 
organizations and officers and employees of such organizations shall 
be immune from suit and legal process relating to acts performed by 
them in their official capacity and falling within their functions as 
such representatives, officers, or employees except insofar as such im- 
munity may be waived by the foreign government or international 
organization concerned. 

"42 U.S.C. 430(a) (15). 

"26 U.S.C. 3101 Historical Note; 42 U.S.C. 401 Historical Note. 

«22 U.S.C. 288c. 

"22 U.S.C. 288d(a). 

"22 U.S.C. 2S8d(b). 



339 

(c) ^^ Section 3 of the Immigration Act approved March 26, 1924, as 
amended (U.S.C., title 8, sec. 203), is hereby amended by striking 
out the period at the end thereof and inserting in lieu thereof a comma 
and the following: "and (7) a representative of a foreign govern- 
ment in or to an international organization entitled to enjoy privi- 
leges, exemptions, and immunities as an international organization 
under the International Organizations Immunities Act, or an alien 
officer or employee of such an international organization, and the 
family, attendants, servants, and employees of such a representative, 
officer, or employee". 

(d)*^ Section 15 of the Immigration Act approved May 26, 1924, as 
amended (U.S.C, title 8, sec. 215), is hereby amended to read as 
follows : 

o Sec. 3 of the Immigration Act of May 26, 1924 (8 U.S.C. 203) was repealed and 
replaced by sec. 101(a) (15) of the Immigration and Natlonalitv Act of Jnnp 27. 19.")2. 
Public Law 82-414. 66 Stat 167, 8 U.S.C. 1101(a) (15). Sec. 7(c) of the International 
Organizations Immunities Act, set forth In the text above, Is now covered by sec. 
101(a) (15) (G) of the Immigration and Nationality Act of June 27, 1952 (8 U.S.C. 
1101(a) (15) (G)). which provides: 

"(G) (i) a designated principal resident representative of a foreign government 
recogniJed de Jure by the United States, which foreign government Is a member of 
an International organization entitled to enjoy privileges, exemptions, and Immunities 
as an International organization under the International Organizations Immunity 
Act (55 Stat 669), accredited resident members of the staff of such representatives, 
and members of his or their immediate family ; 

•*(li) other accredited representatives of such a foreign government to such Inter- 
national organizations, and the members of their Immediate families ; 

"(HI) an alien able to qualify under (1) or (11) above except for the fact that the 
ffovernment of which such alien Is an accredited representative Is not recognized de- 
jure by the United States, or that the government of which he Is an accredited repre- 
sentative is not a member of such International organization, and the members of his 
Immediate family ; 

"(Iv) officers, or employees of such International organizations, and the members of 
their immediate families ; 

"(v) attendants, servants, and personal employees of any such renresentatlve. officer, 
or employee, and the members of the immediate families of such attendants, servants, 
and personal employees ;" 
Sec. l()l(a)(15) of the Immigration and Nationality Act of June 27. 1952 (8 U.S.C. 
1101(a) (15)) establishes nine categories of "nonimmigrant" aliens (aliens admitted to 
the United States on a temporary basis, not for permanent residence here, and therefore 
not subject to quota restrictions). These are: Class A. Foreign government officials; 
Class B. Temporary visitors: Class C, Transit aliens (Including aliens entitled to pass in 
transit to and from the United Nations headquarters In New York City) ; Class D. Crew- 
men : Class E, treaty traders and treaty Investors : Class F. Students : Class G. Interna- 
tional organizations personnel ; Class H. Temporary workers : Class I. Foreign corre- 
spondents. A detailed account of the Immigration and Nationality Act of June 27. 1952 
appears In a special article In Title 8 of the United States Code Annotated, prepared by 
Walter M. Besterman. Legislative Assistant, Committee on the Judiciary. House of Repre- 
sentatives, United States. 

«=Sec. 15 of the Immigration Act of Mav 26, 1924 (8 U.S.C. 215) has been repealed 
and replaced by sees. 102, 214 and 241 of the Immigration and Nationality Act of June 
27. 1952 (8 U.S.C. 1102. 1184. 1251(e)). Sec. 7(d) of the International Organiza- 
tions Immunities Act, set forth In the text above, is now covered by sec. 102 of the 
Immigration and Nationality Act of June 27, 1952 (8 U.S.C. 1102), which states: 

"Sec. 102. Except as otherwise provided in this Act, for so long as they continue in the 
nonimmigrant classes enumerated in this section, the provisions of this Act relating to 
ineligibility to receive visas and the exclusion or deportation of aliens shall not be con- 
strued to apply to nonimmigrants — 

"(1) within t'^e class described In paragraph (15) (A)(1) of section 101(a). except 
those provisions relating to reasonable requirements of passports and visas as a means 
of Identification and documentation necessary to establish their qualifications under 
such paragraph (15) (A) (i). and. under such rules and regulations as the President 
may deem to be necessary, the provisions of paragraph (27) of section 212(a) ; 

"(2> within the class described In paragraph (15)(G)fI) of section 101(a). ex- 
cept those provisions relating to reasonable requirements of passports and visas as a 
means of Identification and documentation necessary to establish their qualifications 
under such paragraph (15) (G)(1), and the provisions of paragraph (27) of section 
212(a) : and 

"(3) within the classes described In paragraphs (15) (A) (11). (15)(G)(11), 

(15) (G) (ill), or (15)(G)(iv) of section 101(a). except those provisions relating 

to reasonable requirements of passports and visas as a means of identification and 

documentation necessarv to establish their qualifications under such paragraphs, and 

the provisions of paragraphs (27) and (29) of section 212(a)." 

Sec. 212 of the Immigration and Nationality Act of June 27. 1952 (8 U.S.C. 1182), 

sets forth the various classes of aliens to be excluded from admission to the United States. 

Parasrraph (29) of sec. 212fa) (8 F S.C. llS2fa)^ provides: 

"(27) Aliens who the consular officer or the Attorney General knows or has reason to 
believe seek to enter the United States solely, principally, or incidentally to engage In 
activities which would be prejudicial to the public Interest, or endanger the welfare, 
safety, or security of the United States ;'* 

(Continued) 



340 

"Sec. 15. The admission to the United States of an alien excepted 
from tlic class of immigrants by clause (1), (2), (3), (4), (5), (6), 
or (7) of section 3, or declared to be a nonquota immigrant by sub- 
division (e) of section 4, shall be for such time and under such condi- 
tions as may be by regulations prescribed (including, when deemed 
necessary for the classes mentioned in clause (2), (3), (4), or (6) of 
section 3 and subdivision (c) of section 4, the giving of bond with 
sufficient surety, in such sum and containing such conditions as may 
be by regulations prescribed to insure that, at the expiration of such 
time or upon failure to maintain the status under which admitted, he 
will depart from the TTnitod States: Provided, That no alien who has 
been, or who may hereafter be, admitted into the United States under 
clause (1) or (7) of section 3, as an official of a foreign government, 
or as a member of the family of such official, or as a representative 

f Continued) 

Paragraph (29) of sec. 212(a) (8 U.S.C. 1182(a) (29) ) provides : 

"(29) Aliens with respect to whom the consular officer or the Attorney General knows 
or has reasonable jrround to believe probably would, after entry. (A) engage in activities 
which would be prohibited by the laws of the United States relating to espionage, sabotage, 
public disorder, or in other activity subversive to the national security, (B) engage In nnj 
activity a purpose of which Is the opposition to, or the control or overthrow of. the Got 
ernment of the United States, by force, violence, or other unconstitutional means, or 
(C) join, affiliate with, or participate In the activities of any organization which Is regis 
tered or required to be registered under section 7 of the Subversive Activities Control Act 
of 1950:" 

It will be noted that sec. 102 (8 U.S.C. 1102) covers class (15) (G) (H. (ID. (Ill) 
and (Iv) cases of International organizations personnel, but does not rover (lo)(G)(v) 
cases (attendants, servants, and personal employees of such personnel, and members of the 
Immediate families of such attendants, servants, and personal employees). Sec. 212 
(8 U.S.C. 1182) setting forth various grounds of exclusion of aliens such ns mental, 
physical, or moral defects, therefore applies to this class of personnel. Sec. 212(d)(2) 
(8 U.S.C. 1182(d) (2) ) contains this exception • 

"(2) The provisions of paragraph (28) of subsection (a) of this section shall not be 
applicable to any alien who is seeking to enter the United States temporarily as a non- 
Immigrant under paragraph (15) (A) (ill) or (15) (O) (v) of section 101(a)." 

Sec. 212(a) (28) (8 U.S C. 1182(a) (28)) lists various